The continued rise in the price of Bitcoin and advances in cryptocurrency-related Exchange Traded Funds (ETFs) create exciting growth in the world of cryptocurrencies and questions about security.
However, this growth also provides opportunities for malicious actors operating in this environment.
Information is the pillar of security in this universe, and Hacken has thoroughly investigated all relevant incidents that occurred between July 1 and September 30. Here we share the most notable findings.
Over a three-month period, there were 117 major security breaches in the cryptocurrency world, with total losses reaching a staggering $720 million. This highlights the urgent need to implement stronger security measures in this space.
Despite the large number of security breaches, access control violations remain the most devastating form of vulnerability in the world of cryptocurrencies. Each such exploitation had a significant cost, reaching tens of millions of dollars in losses.
Despite their relatively low individual financial impact, “rug pulls” (scams in which project teams increase the value of their tokens and then suddenly withdraw liquidity) are surprisingly common.
These scams take advantage of investors’ fear of missing out on profit opportunities (FOMO) and the excitement generated by the projects, making them dangerous and attractive to scammers.
Of the 78 rug pulls examined, only 12 reported having undergone any type of safety audit. This underlines the importance of independent audits as an essential way to assess the legitimacy of a project.
YOU SHOULD NOT BLINDLY RELY ON A SECURITY AUDIT
Even audited projects can have deficiencies in terms of security.
While two-thirds of the incidents involved unaudited projects, the report delves into why even audited projects are not completely secure.
In addition, it addresses what measures can be taken to strengthen the security of these projects and, therefore, protect investors and users.
This Hacken report is not simply a collection of figures and data. It aims to provide crucial information to various industry players, from developers and regular users to investors and regulators.
The information collected in the report seeks to provide the necessary tools to better understand existing vulnerabilities, make informed decisions and effectively protect crypto assets in an increasingly complex environment.