Crypto projects lose $278 million to July hacks, second-highest in 2024 Crypto projects lose $278 million to July hacks, second-highest in 2024
CertiK stated that $7.8 million of the stolen assets were recovered in July.
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Updated: Aug. 1, 2024 at 11:05 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto projects lost $278.8 million to exploits and hacks in July—the second-highest monthly loss this year—according to blockchain security firm CertiK.
CertiK pointed out that the losses were primarily due to exit scams, flash loans, and other exploits. However, $7.8 million of these stolen assets were recovered, reducing the net loss to $270.9 million.
The exploits
Project exploits were the most significant contributors, amounting to approximately $265 million. The top five exploits, including incidents involving WazirX, Li.Fi, Bittensor PyPi, and Terra IBC were responsible for about $253 million.
On July 18, Indian crypto exchange WazirX suffered an exploit totaling $235 million, triggered by suspicious transactions in its Ethereum network multi-sig wallet. Market observers said the attack was linked to North Korea-backed Lazarus Group, which has begun laundering the funds via crypto mixing tools like Tornado Cash.
Meanwhile, the exchange has paused operations and introduced a $23 million bounty to incentivize the attackers to refund the stolen funds. WazirX has also proposed “implementing a socialized loss strategy to distribute the impact equitably among all users.”
Another major exploit last month was the $10 million smart contract exploit of the LiFi protocol. Reports revealed that the platform had suffered a similar attack in March 2022.
Flash loan attacks also saw notable incidents. On July 19, Rho Markets, a lending protocol on the Scroll layer-2 network, experienced a $7.6 million exploit on its USDC and USDT pools. The platform later confirmed that the entire amount was recovered from the MEV address.
Dough Finance, a liquidity provider, suffered a $2.1 million loss through multiple flash loan transactions. While some funds were returned, a significant portion was sent to the crypto-mixing tool Tornado Cash.
Furthermore, exit scams contributed roughly $3 million in losses last month.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
WazirX
WazirX is an India-based cryptocurrency exchange with an advanced trading interface and features to Buy, Sell & Trade cryptocurrencies.
Nischal Shetty is the founder and CEO of India’s leading cryptocurrency exchange WazirX.