Research firm Cybersecurity Ventures predicts that global cybercrime losses will amount to $265 billion by 2031, while hacker attacks will occur every 2 seconds. Cybercrimes include corruption and destruction of data, as well as theft of intellectual property, personal and financial data, fraud, and theft of funds.
The cryptocurrency market with a capitalization of more than $2 billion attracts not only investors, but also cybercriminals. Over the past few weeks, we have known about the following cases.
BadgerDAO – $120 million
On December 2nd, an unauthorized withdrawal of funds was noticed on the BadgerDAO platform, which provides products for using Bitcoin in DeFi applications on other blockchains. As a result of the hacker attack, about $120 million USD was stolen, transferred by unknown persons to various wallets.
The platform has suspended smart contracts to prevent further withdrawals and is investigating the incident. The criminalists of Chainalysis (a platform engaged in investigating crimes related to cryptocurrencies), as well as the authorities of the US and Canada, joined the case.
The developer of BadgerDAO said that most likely not the smart contract but the site interface was compromised. Users thought they were granting permissions to operations with their wallets to the platform, but in fact they were transferring funds to a third-party address.
MonoX – $31 million
MonoX, a decentralized platform that allows users to place tokens in liquidity pools for a reward, was hacked in late November. The attackers were able to increase the price of the native MONO token using a smart contract, having bought other assets for $31 million. By the way, the MONO token was listed on the Huobi exchange just a few days before the platform was hacked. A hacker attack can affect the platform's rating.
MonoX representatives apologized to users who had transferred their coins to pools awaiting for the Airdrop, and asked the hackers to get connected with the platform for further discussion.
bZx – $55 million
The bZx decentralized lending platform has been hacked three times over the past two years. The last time this occurred was in early November, while the amount of damage amounted to about $55 million. The private key for managing the deployment of the project on Binance Smart Chain and Polygon was compromised. Ethereum smart contracts have not been hacked.
Fraud – $5 million
It is not uncommon for crypto users to become involved in fraudulent schemes out of their own imprudence. Last week it became known that American Jeremy Spence (aka “Coin Signals” on the crypto market) promised investors large earnings on trading, but after receiving the money, he provided depositors with falsified documents on making a profit. The defrauded investors lost $5 million, therefore Spence is going to face up to 10 years in prison.
The crypto field is one of the most profitable industries in the financial market and therefore it remains vulnerable. As the example of BadgerDAO showed, the addresses to which you transfer funds must be checked carefully, even if you access it through the official website, while in the case of Jeremy Spence – you should be more responsible when choosing investment objects.
EDC Blockchain uses a proof-of-stake consensus algorithm whereby block creation and transaction validation is done by coin holders. If they violate the terms of consensus or try to compromise the network, the user can be fined or even excluded from the network. In order to carry out an attack on such a blockchain, a hacker will need to get hold of more than half of the users' coins, which makes the possibility of hacker attacks unprofitable.
EDC Blockchain recommends that all users also check the website address (https://blockchain.mn/) in the browser search bar and download wallets only from the official website, as well as warns about the existence of phishing sites that completely copy the platform interface. Representatives of EDC Blockchain never contact you in private messages and do not call for investment activities.
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