Crypto Sector Suffers $88M Loss From October Hacks

In October 2024, the cryptocurrency industry faced significant security challenges, with approximately 20 hacking incidents reported. According to cybersecurity firm PeckShieldAlert, these breaches resulted in total losses nearing $88.47 million.

• The majority of these losses were concentrated in five major hacks, with Radiant Capital suffering the most severe impact.

Major Hacks in October

PeckShieldAlert identified several notable incidents, including:

• Radiant Capital Exploit

  • On October 17, Radiant Capital experienced a significant breach where millions in crypto assets were bridged to Ethereum. Initial estimates of the loss varied, with Spot on Chain concluding the total at $53 million. This incident marked the platform's second major hack this year, following a $4.5 million loss in January 2024.

• U.S. Government Wallet Compromise

  • A wallet likely controlled by the U.S. government was hacked, leading to a loss of $20 million. The wallet contained assets seized from the 2016 Bitfinex hack. Interestingly, the attacker returned approximately $19.3 million back to the wallet after the breach.

• EigenLayer Incident

  • On October 4, EigenLayer was targeted, resulting in a theft of $5.7 million. The stolen funds were subsequently laundered through HitBTC and Bybit exchanges, with the project team investigating unauthorized selling activity linked to a flagged wallet.

Additional Security Breaches

Other significant incidents included:

• Tapioca Foundation

  • The decentralized finance platform lost $4.7 million due to a social engineering attack. Hackers exploited a compromised key to control the project’s token vesting contract, minting an unlimited number of USDO tokens and draining $3 million from the liquidity pool. The foundation managed to recover approximately 1,000 ETH, valued at over $2.7 million.

• Sunray Finance

  • Sunray Finance lost $2.86 million when a malicious smart contract was upgraded in a single transaction. The attacker used the Across bridge to fund their wallet and minted 200 trillion SUN tokens, which they exchanged for USDT, causing the SUN token's value to plummet to zero.

The October hacking incidents have raised concerns about security within the crypto sector, highlighting the need for enhanced protective measures. As the industry continues to evolve, stakeholders must remain vigilant against potential threats.