Here’s How Much the Crypto Industry Lost to Hacks in September

The industry suffered significant losses due to crypto hacks and scams last month.

Hacker in the money grabbing portal.
Created by Kornelija Poderskytė from DailyCoin
  • Threat actors continue to exploit the crypto industry.
  • The previous month recorded millions in losses across various entities.
  • The latest numbers mark a shift from past trends.

The crypto industry has long struggled with persistent threats of hacks and scams, leading to significant losses for both investors and institutions. Despite the increasing adoption of robust security measures, malicious actors continue exploiting the sector’s vulnerabilities.

Last month was no exception, with a series of incidents resulting in millions of dollars in industry losses.

September Crypto Losses Exceed $100M

Malicious actors have made off another hundred-million-dollar bag of industry funds in yet another wave of breaches. According to a PeckShield Alert report released on October 1, $120.23 million was lost to various hacks and scams in September alone.

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The losses were spread over 20 security incidents across the industry, ranging from cyber attacks to high-profile wallet breaches. The September 20 hot wallet breach on ​​crypto exchange BingX took the lion’s share of the losses, accounting for approximately 37% at $44 million.

Two other notable incidents included the attacks on the decentralized finance (DeFi) platform Penpie and the Indonesia-based exchange Indodax, which suffered losses of $27 million and $21 million, respectively.

Other incidents resulted in losses ranging from approximately $6 million to $1 million. Despite the weight of these, the total losses incurred in September sit significantly below previous records.

Is the Industry Catching a Break?

Last month, the $120.23 million lost to hacks and scams marks a substantial reduction from the losses recorded in previous months. 

In contrast, crypto losses in August totaled approximately $313.9 million, placing the latest figure 89% below the past trend. Phishing attacks accounted for the majority of those, totaling $293.4 million, or 93.5% of the total stolen funds for that month.

Similarly, losses in the first part of the year have reportedly surpassed a staggering $1.3 billion, stemming from various incidents of thefts and cyberattacks. 

The latest decline in numbers positions September as the second-lowest month for losses in 2024, following April’s $60.2 million.

On the Flipside

  • Experts have highlighted that higher average token prices this year may have contributed to the increased volume of thefts.
  • WazirX, the exchange which fell victim to the second-largest crypto security incident of the year so far at a $234 million hack on July 18 is still struggling to recover.
  • A separate phishing attack on Permit signatures in September caused the industry to lose an additional $32.4 million last month.

Why This Matters

The $120.23 million loss in September once again highlights that hacks and scams remain a persistent threat to the crypto industry. While the downward trend in losses offers some relief, these threat actors remain active and relentless in exploiting vulnerabilities in the sector, underscoring the need for bolstered security measures.

Read this article for other bold schemes by industry cyber attackers:
Crypto Hackers Breach India’s Supreme Court YouTube Channel 

Another crypto exchange is winding down operations in Canada; read here for more details:
Gemini Exchange Latest to Fold In Canada’s Regulatory Squeeze

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace is a crypto reporter for DailyCoin, covering a diverse range of market updates. Grace has minor holdings in Bitcoin & Solana, and moderate holdings in Rune & XRP.

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