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It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n

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\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

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\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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By subscribing, you agree with our privacy and terms.

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ADVERTISEMENT

\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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August 15, 2024

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November 24, 2024

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By subscribing, you agree with our privacy and terms.

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\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

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November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
Regardless of hack risk, crypto\u00a0projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
\n
Regardless of hack risk, crypto\u00a0projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

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Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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August 15, 2024

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November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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ADVERTISEMENT

\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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Follow The Distributed

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\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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August 15, 2024

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November 24, 2024

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Follow The Distributed

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\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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August 15, 2024

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November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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ADVERTISEMENT

\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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August 15, 2024

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Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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Follow The Distributed

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\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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Follow The Distributed

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\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Highlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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\n
$\"Top$ <\/figure>\n\n\n\n
Highlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\n
Highlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\n
Highlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

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August 15, 2024

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November 24, 2024

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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August 15, 2024

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Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

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Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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Follow The Distributed

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\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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Follow The Distributed

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\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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Follow The Distributed

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\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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August 15, 2024

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November 24, 2024

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Follow The Distributed

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\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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August 15, 2024

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November 24, 2024

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\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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August 15, 2024

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November 24, 2024

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\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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Follow The Distributed

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\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

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November 24, 2024

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\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Artificial Intelligence

Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

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November 24, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

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\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

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Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

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November 24, 2024

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\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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August 15, 2024

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November 24, 2024

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\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

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November 24, 2024

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\n
Twitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 2 3 Next

Most Read

Bitcoin

North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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Introducing Gemini Live: Google’s New AI Feature That Allows Real-Time Conversations

August 15, 2024

Banking

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November 24, 2024

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Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\n
Twitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\n
Twitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\n
Twitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The Lazarus Group has an extensive record of involvement in crypto exchange hacks. This history includes the theft of $100 million from Harmony's Horizon Bridge and a massive $625 million cryptocurrency theft from the Ronin Network, an Ethereum-based sidechain designed for the popular play-to-earn game Axie Infinity.<\/p>\n","post_title":"North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"north-korean-hackers-target-bitcoin-cash-out-fbi-issues-warning-to-crypto-firms","to_ping":"","pinged":"","post_modified":"2023-08-27 20:24:40","post_modified_gmt":"2023-08-27 10:24:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13095","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12976,"post_author":"15","post_date":"2023-08-08 00:30:31","post_date_gmt":"2023-08-07 14:30:31","post_content":"\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms

August 27, 2023

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November 24, 2024

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\n
CoinsPaid, a cryptocurrency wallet provider, experienced a significant attack resulting in a loss of $37 million. During a post-mortem analysis of the incident, CoinsPaid strongly suspected the involvement of the notorious group.<\/p>\n\n\n\n
The Lazarus Group has an extensive record of involvement in crypto exchange hacks. This history includes the theft of $100 million from Harmony's Horizon Bridge and a massive $625 million cryptocurrency theft from the Ronin Network, an Ethereum-based sidechain designed for the popular play-to-earn game Axie Infinity.<\/p>\n","post_title":"North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"north-korean-hackers-target-bitcoin-cash-out-fbi-issues-warning-to-crypto-firms","to_ping":"","pinged":"","post_modified":"2023-08-27 20:24:40","post_modified_gmt":"2023-08-27 10:24:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13095","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12976,"post_author":"15","post_date":"2023-08-08 00:30:31","post_date_gmt":"2023-08-07 14:30:31","post_content":"\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Lazarus Group hackers were also tied to the theft of $60 million virtual currency from AlphaPo, a centralized crypto payment provider.<\/p>\n\n\n\n
CoinsPaid, a cryptocurrency wallet provider, experienced a significant attack resulting in a loss of $37 million. During a post-mortem analysis of the incident, CoinsPaid strongly suspected the involvement of the notorious group.<\/p>\n\n\n\n
The Lazarus Group has an extensive record of involvement in crypto exchange hacks. This history includes the theft of $100 million from Harmony's Horizon Bridge and a massive $625 million cryptocurrency theft from the Ronin Network, an Ethereum-based sidechain designed for the popular play-to-earn game Axie Infinity.<\/p>\n","post_title":"North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"north-korean-hackers-target-bitcoin-cash-out-fbi-issues-warning-to-crypto-firms","to_ping":"","pinged":"","post_modified":"2023-08-27 20:24:40","post_modified_gmt":"2023-08-27 10:24:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13095","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12976,"post_author":"15","post_date":"2023-08-08 00:30:31","post_date_gmt":"2023-08-07 14:30:31","post_content":"\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
In June, Atomic Wallet fell victim to a major hack where hackers stole over $100 million in virtual currency. The blockchain analysis firm Elliptic reported that the Lazarus Group, a well-known cybercriminal organization, was responsible for this attack. Notably, the laundering process for the stolen crypto assets closely matched the techniques employed in past hacks attributed to the group.<\/p>\n\n\n\n
Lazarus Group hackers were also tied to the theft of $60 million virtual currency from AlphaPo, a centralized crypto payment provider.<\/p>\n\n\n\n
CoinsPaid, a cryptocurrency wallet provider, experienced a significant attack resulting in a loss of $37 million. During a post-mortem analysis of the incident, CoinsPaid strongly suspected the involvement of the notorious group.<\/p>\n\n\n\n
The Lazarus Group has an extensive record of involvement in crypto exchange hacks. This history includes the theft of $100 million from Harmony's Horizon Bridge and a massive $625 million cryptocurrency theft from the Ronin Network, an Ethereum-based sidechain designed for the popular play-to-earn game Axie Infinity.<\/p>\n","post_title":"North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"north-korean-hackers-target-bitcoin-cash-out-fbi-issues-warning-to-crypto-firms","to_ping":"","pinged":"","post_modified":"2023-08-27 20:24:40","post_modified_gmt":"2023-08-27 10:24:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13095","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12976,"post_author":"15","post_date":"2023-08-08 00:30:31","post_date_gmt":"2023-08-07 14:30:31","post_content":"\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Lazarus Recent Hacks<\/h2>\n\n\n\n
In June, Atomic Wallet fell victim to a major hack where hackers stole over $100 million in virtual currency. The blockchain analysis firm Elliptic reported that the Lazarus Group, a well-known cybercriminal organization, was responsible for this attack. Notably, the laundering process for the stolen crypto assets closely matched the techniques employed in past hacks attributed to the group.<\/p>\n\n\n\n
Lazarus Group hackers were also tied to the theft of $60 million virtual currency from AlphaPo, a centralized crypto payment provider.<\/p>\n\n\n\n
CoinsPaid, a cryptocurrency wallet provider, experienced a significant attack resulting in a loss of $37 million. During a post-mortem analysis of the incident, CoinsPaid strongly suspected the involvement of the notorious group.<\/p>\n\n\n\n
The Lazarus Group has an extensive record of involvement in crypto exchange hacks. This history includes the theft of $100 million from Harmony's Horizon Bridge and a massive $625 million cryptocurrency theft from the Ronin Network, an Ethereum-based sidechain designed for the popular play-to-earn game Axie Infinity.<\/p>\n","post_title":"North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"north-korean-hackers-target-bitcoin-cash-out-fbi-issues-warning-to-crypto-firms","to_ping":"","pinged":"","post_modified":"2023-08-27 20:24:40","post_modified_gmt":"2023-08-27 10:24:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13095","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12976,"post_author":"15","post_date":"2023-08-08 00:30:31","post_date_gmt":"2023-08-07 14:30:31","post_content":"\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The press release also included information about six Bitcoin wallets identified as allegedly owned by the hackers.<\/p>\n\n\n\n
Lazarus Recent Hacks<\/h2>\n\n\n\n
In June, Atomic Wallet fell victim to a major hack where hackers stole over $100 million in virtual currency. The blockchain analysis firm Elliptic reported that the Lazarus Group, a well-known cybercriminal organization, was responsible for this attack. Notably, the laundering process for the stolen crypto assets closely matched the techniques employed in past hacks attributed to the group.<\/p>\n\n\n\n
Lazarus Group hackers were also tied to the theft of $60 million virtual currency from AlphaPo, a centralized crypto payment provider.<\/p>\n\n\n\n
CoinsPaid, a cryptocurrency wallet provider, experienced a significant attack resulting in a loss of $37 million. During a post-mortem analysis of the incident, CoinsPaid strongly suspected the involvement of the notorious group.<\/p>\n\n\n\n
The Lazarus Group has an extensive record of involvement in crypto exchange hacks. This history includes the theft of $100 million from Harmony's Horizon Bridge and a massive $625 million cryptocurrency theft from the Ronin Network, an Ethereum-based sidechain designed for the popular play-to-earn game Axie Infinity.<\/p>\n","post_title":"North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"north-korean-hackers-target-bitcoin-cash-out-fbi-issues-warning-to-crypto-firms","to_ping":"","pinged":"","post_modified":"2023-08-27 20:24:40","post_modified_gmt":"2023-08-27 10:24:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13095","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12976,"post_author":"15","post_date":"2023-08-08 00:30:31","post_date_gmt":"2023-08-07 14:30:31","post_content":"\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\u201cPrivate sector entities should examine the blockchain data associated with these addresses and be vigilant in guarding against transactions directly with, or derived from, the addresses,\u201d <\/em>the alert warned.<\/p>\n\n\n\n
The press release also included information about six Bitcoin wallets identified as allegedly owned by the hackers.<\/p>\n\n\n\n
Lazarus Recent Hacks<\/h2>\n\n\n\n
In June, Atomic Wallet fell victim to a major hack where hackers stole over $100 million in virtual currency. The blockchain analysis firm Elliptic reported that the Lazarus Group, a well-known cybercriminal organization, was responsible for this attack. Notably, the laundering process for the stolen crypto assets closely matched the techniques employed in past hacks attributed to the group.<\/p>\n\n\n\n
Lazarus Group hackers were also tied to the theft of $60 million virtual currency from AlphaPo, a centralized crypto payment provider.<\/p>\n\n\n\n
CoinsPaid, a cryptocurrency wallet provider, experienced a significant attack resulting in a loss of $37 million. During a post-mortem analysis of the incident, CoinsPaid strongly suspected the involvement of the notorious group.<\/p>\n\n\n\n
The Lazarus Group has an extensive record of involvement in crypto exchange hacks. This history includes the theft of $100 million from Harmony's Horizon Bridge and a massive $625 million cryptocurrency theft from the Ronin Network, an Ethereum-based sidechain designed for the popular play-to-earn game Axie Infinity.<\/p>\n","post_title":"North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"north-korean-hackers-target-bitcoin-cash-out-fbi-issues-warning-to-crypto-firms","to_ping":"","pinged":"","post_modified":"2023-08-27 20:24:40","post_modified_gmt":"2023-08-27 10:24:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13095","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12976,"post_author":"15","post_date":"2023-08-08 00:30:31","post_date_gmt":"2023-08-07 14:30:31","post_content":"\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Authorities suspect that the state-backed groups \"may attempt to cash out\" their holdings into cash.<\/p>\n\n\n\n
\u201cPrivate sector entities should examine the blockchain data associated with these addresses and be vigilant in guarding against transactions directly with, or derived from, the addresses,\u201d <\/em>the alert warned.<\/p>\n\n\n\n
The press release also included information about six Bitcoin wallets identified as allegedly owned by the hackers.<\/p>\n\n\n\n
Lazarus Recent Hacks<\/h2>\n\n\n\n
In June, Atomic Wallet fell victim to a major hack where hackers stole over $100 million in virtual currency. The blockchain analysis firm Elliptic reported that the Lazarus Group, a well-known cybercriminal organization, was responsible for this attack. Notably, the laundering process for the stolen crypto assets closely matched the techniques employed in past hacks attributed to the group.<\/p>\n\n\n\n
Lazarus Group hackers were also tied to the theft of $60 million virtual currency from AlphaPo, a centralized crypto payment provider.<\/p>\n\n\n\n
CoinsPaid, a cryptocurrency wallet provider, experienced a significant attack resulting in a loss of $37 million. During a post-mortem analysis of the incident, CoinsPaid strongly suspected the involvement of the notorious group.<\/p>\n\n\n\n
The Lazarus Group has an extensive record of involvement in crypto exchange hacks. This history includes the theft of $100 million from Harmony's Horizon Bridge and a massive $625 million cryptocurrency theft from the Ronin Network, an Ethereum-based sidechain designed for the popular play-to-earn game Axie Infinity.<\/p>\n","post_title":"North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"north-korean-hackers-target-bitcoin-cash-out-fbi-issues-warning-to-crypto-firms","to_ping":"","pinged":"","post_modified":"2023-08-27 20:24:40","post_modified_gmt":"2023-08-27 10:24:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13095","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12976,"post_author":"15","post_date":"2023-08-08 00:30:31","post_date_gmt":"2023-08-07 14:30:31","post_content":"\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
In the past 24 hours, North Korean cybercriminals shifted around 1,580 Bitcoin, roughly $40 million today, according to the FBI. The cryptocurrency funds were associated with the Lazarus Group and APT38.<\/p>\n\n\n\n
Authorities suspect that the state-backed groups \"may attempt to cash out\" their holdings into cash.<\/p>\n\n\n\n
\u201cPrivate sector entities should examine the blockchain data associated with these addresses and be vigilant in guarding against transactions directly with, or derived from, the addresses,\u201d <\/em>the alert warned.<\/p>\n\n\n\n
The press release also included information about six Bitcoin wallets identified as allegedly owned by the hackers.<\/p>\n\n\n\n
Lazarus Recent Hacks<\/h2>\n\n\n\n
In June, Atomic Wallet fell victim to a major hack where hackers stole over $100 million in virtual currency. The blockchain analysis firm Elliptic reported that the Lazarus Group, a well-known cybercriminal organization, was responsible for this attack. Notably, the laundering process for the stolen crypto assets closely matched the techniques employed in past hacks attributed to the group.<\/p>\n\n\n\n
Lazarus Group hackers were also tied to the theft of $60 million virtual currency from AlphaPo, a centralized crypto payment provider.<\/p>\n\n\n\n
CoinsPaid, a cryptocurrency wallet provider, experienced a significant attack resulting in a loss of $37 million. During a post-mortem analysis of the incident, CoinsPaid strongly suspected the involvement of the notorious group.<\/p>\n\n\n\n
The Lazarus Group has an extensive record of involvement in crypto exchange hacks. This history includes the theft of $100 million from Harmony's Horizon Bridge and a massive $625 million cryptocurrency theft from the Ronin Network, an Ethereum-based sidechain designed for the popular play-to-earn game Axie Infinity.<\/p>\n","post_title":"North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"north-korean-hackers-target-bitcoin-cash-out-fbi-issues-warning-to-crypto-firms","to_ping":"","pinged":"","post_modified":"2023-08-27 20:24:40","post_modified_gmt":"2023-08-27 10:24:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13095","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12976,"post_author":"15","post_date":"2023-08-08 00:30:31","post_date_gmt":"2023-08-07 14:30:31","post_content":"\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The FBI has alerted <\/a>cryptocurrency companies to the funds associated with North Korean hacking groups Lazarus Group and APT38. These groups are believed to be moving these funds, raising concerns within the crypto industry.<\/p>\n\n\n\n
In the past 24 hours, North Korean cybercriminals shifted around 1,580 Bitcoin, roughly $40 million today, according to the FBI. The cryptocurrency funds were associated with the Lazarus Group and APT38.<\/p>\n\n\n\n
Authorities suspect that the state-backed groups \"may attempt to cash out\" their holdings into cash.<\/p>\n\n\n\n
\u201cPrivate sector entities should examine the blockchain data associated with these addresses and be vigilant in guarding against transactions directly with, or derived from, the addresses,\u201d <\/em>the alert warned.<\/p>\n\n\n\n
The press release also included information about six Bitcoin wallets identified as allegedly owned by the hackers.<\/p>\n\n\n\n
Lazarus Recent Hacks<\/h2>\n\n\n\n
In June, Atomic Wallet fell victim to a major hack where hackers stole over $100 million in virtual currency. The blockchain analysis firm Elliptic reported that the Lazarus Group, a well-known cybercriminal organization, was responsible for this attack. Notably, the laundering process for the stolen crypto assets closely matched the techniques employed in past hacks attributed to the group.<\/p>\n\n\n\n
Lazarus Group hackers were also tied to the theft of $60 million virtual currency from AlphaPo, a centralized crypto payment provider.<\/p>\n\n\n\n
CoinsPaid, a cryptocurrency wallet provider, experienced a significant attack resulting in a loss of $37 million. During a post-mortem analysis of the incident, CoinsPaid strongly suspected the involvement of the notorious group.<\/p>\n\n\n\n
The Lazarus Group has an extensive record of involvement in crypto exchange hacks. This history includes the theft of $100 million from Harmony's Horizon Bridge and a massive $625 million cryptocurrency theft from the Ronin Network, an Ethereum-based sidechain designed for the popular play-to-earn game Axie Infinity.<\/p>\n","post_title":"North Korean Hackers Target Bitcoin Cash-Out, FBI Issues Warning to Crypto Firms","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"north-korean-hackers-target-bitcoin-cash-out-fbi-issues-warning-to-crypto-firms","to_ping":"","pinged":"","post_modified":"2023-08-27 20:24:40","post_modified_gmt":"2023-08-27 10:24:40","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=13095","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12976,"post_author":"15","post_date":"2023-08-08 00:30:31","post_date_gmt":"2023-08-07 14:30:31","post_content":"\n

Following the recent multi-million-dollar breach of Curve Finance, the deadline <\/a>for the perpetrator to restore the funds has expired. Consequently, the reward for revealing the hacker's identity is now accessible to the general public.<\/p>\n\n\n\n
Curve Finance states <\/a>that whoever aids in identifying the exploiter and contributes to their legal conviction will be rewarded. The informer receives a 10% reward from the remaining stolen funds, about $20 million. <\/p>\n\n\n\n
The team offered the exploiters a \"10% bounty of any stolen funds\" <\/em>in exchange for returning the rest. They gave a deadline of August 6 at 8 am UTC. Representatives from Curve Finance MetronomeDAO, and Alchemix sent a warning to the bad actor. The message simply says that if they reject the bounty, the teams will \u201cexpand the bounty to the public,\u201d<\/em> offering the same amount to whoever leads to the perpetrator.<\/p>\n\n\n\n
Blockchain security firm PeckShield tweeted that the stolen crypto amounted to $73.5 million, with $53.5 million (73%) already returned. <\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/PeckShieldAlert\/status\/1688404426825117697?s=20\n<\/div><\/figure>\n\n\n\nTwitter space thoughts?<\/h2>\n\n\n\n
\u201cThis is the state of the crypto justice system,\u201d<\/em> tweeted<\/a> one user, adding, \u201cThis is the fault of blockchains not having governance and defense in depth built directly into the blockchain protocol level.\u201d<\/em><\/p>\n\n\n\n
Some suggested that the assault might be another action by the Lazarus group, a North Korean hacker cell known for recent high-profile exploits.<\/p>\n","post_title":"Curve Finance Hacker's Missed Deadline Triggers $1.8M Bounty","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"curve-finance-hackers-missed-deadline-triggers-1-8m-bounty","to_ping":"","pinged":"","post_modified":"2023-08-08 00:30:36","post_modified_gmt":"2023-08-07 14:30:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12976","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12913,"post_author":"15","post_date":"2023-08-07 16:22:10","post_date_gmt":"2023-08-07 06:22:10","post_content":"\n
Blockchain data indicates the culprit behind the $61 million asset drain on Curve Finance returned some stolen crypto. After conversing with one victim, the responsible person returned the assets last Friday, performing a good act. <\/p>\n\n\n\n
The looter sent a message<\/a> in an Ethereum transaction, confirming that the wallet address was right. Afterwards, they transferred nearly $10 million worth of ETH and alETH in multiple transactions to the multi-signature wallet.<\/p>\n\n\n\n
$\"\"$ <\/figure>\n\n\n\n
The transactions raise optimism for victims as they hope to recover most of the stolen assets. This incident marks one of the most significant crypto exploits this year, with Curve, Metronome, and Alchemix losing $61.7 million in crypto assets due to a hacker exploiting a coding bug to drain several trading pools over the weekend.<\/p>\n\n\n\n
Countermeasure<\/h2>\n\n\n\n
On Thursday, the affected protocols offered a 10% bounty for returning the assets no later than Aug. 6. \"You will have no risk of us pursuing this further, no risk of law enforcement issues, etc<\/em>,\" Curve, Metronome, and Alchemix wrote in an on-chain message<\/a> sent to a hacker's Ethereum address. <\/p>\n\n\n\n
After the deadline, their bounty will become a vigilante payout to whoever provides information that leads to the hacker's arrest. \"We will pursue you from all angles with the full extent of the law,\"<\/em> the message said.<\/p>\n\n\n\n
Michael Egorov, founder of Curve, faced the risk of liquidation on his $168 million CRV-backed loans due to the market plunge. To prevent a catastrophe, he sold about $42 million of his CRV holdings to Justin Sun, founder of Tron blockchain, through over-the-counter deals.<\/p>\n","post_title":"Hacker Involved In $61M Curve Hack Begins Returning Assets","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hacker-involved-in-61m-curve-hack-begins-returning-assets","to_ping":"","pinged":"","post_modified":"2023-08-07 16:22:15","post_modified_gmt":"2023-08-07 06:22:15","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12913","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12829,"post_author":"15","post_date":"2023-08-03 15:25:08","post_date_gmt":"2023-08-03 05:25:08","post_content":"\n
On Sunday, attackers targeted decentralized finance protocols, stealing over $24 million in cryptocurrency. The attackers exploited a vulnerability in Curve, the automated market maker platform's liquidity pools. <\/p>\n\n\n\n
According to Curve on Twitter<\/a>, the vulnerability was traced back to Vyper, an alternative third-party programming language for Ethereum smart contracts. Curve confirmed that other liquidity pools that do not use this language remain unaffected and secure.<\/p>\n\n\n\n
\nhttps:\/\/twitter.com\/CurveFinance\/status\/1685693202722848768?s=20\n<\/div><\/figure>\n\n\n\n
Decurity, a decentralized finance security firm, revealed <\/a>that the NFT lending protocol JPEG'd suffered an $11 million cryptocurrency theft. JPEG'd was one of the first to detect the problem in its Curve pool.<\/p>\n\n\n\n
Exploit's Root Cause<\/h2>\n\n\n\n
Curve initially referred to the vulnerability as a typical \"re-entrance\" attack in a Tweet that has since been deleted. Re-entrancy attacks occur when a smart contract interacts with another, leading to incomplete execution.<\/p>\n\n\n\n
Re-entrancy vulnerabilities enable attackers to execute multiple calls in a single function, leading smart contracts to calculate incorrect balances. The $55 million 2016 DAO hack on Ethereum is a notable example.<\/p>\n\n\n\n
Curve initially responded to a Twitter account with a retracted statement, but later clarified their error. Curve confirmed that no wrongdoing occurred for projects integrating Vyper or its users.<\/p>\n\n\n\n
According to Vyper on Twitter, the language's compiler failed, affecting re-entry guards. These guards, included in the projects' code, are designed to protect against re-entry attacks but were ineffective.<\/p>\n\n\n\n
This prevented re-entry guards\u2014protections that were included in the projects\u2019 code and should guard against re-entry attacks\u2014from working, Meir Dolev said to Decrypt. Meir Dolev is the co-founder and CTO of cybersecurity firm Cyvers<\/p>\n","post_title":"DeFi Projects Suffer $24 Million Heist In Curve Pool Exploits","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-projects-suffer-24-million-heist-in-curve-pool-exploits","to_ping":"","pinged":"","post_modified":"2023-08-03 15:25:13","post_modified_gmt":"2023-08-03 05:25:13","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12829","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12659,"post_author":"15","post_date":"2023-07-24 11:58:31","post_date_gmt":"2023-07-24 01:58:31","post_content":"\n
Local Canadian neighborhoods are witnessing a surge of home-invasion-style robberies. Thieves are targeting affluent cryptocurrency investors' private keys, as stated by the Royal Canadian Mounted Police (RCMP) on their website. <\/p>\n\n\n\n
Richmond and Delta police have warned<\/a> about this increasing trend, citing \"several robberies\"<\/em> of this nature. <\/p>\n\n\n\n
\"The suspects appear to know the victims are heavily invested in cryptocurrency, know where they live, and are robbing them in their own homes,\"<\/em> says Staff Sergeant Jill Long of Delta Police Investigative Services.<\/p>\n\n\n\n
In all instances, the perpetrators pretend to be delivery personnel or officials to enter victims' homes. Once inside, they steal data giving access to the victims' cryptocurrency accounts.<\/p>\n\n\n\n
The police are actively investigating and have not disclosed specific incidents or the amount of stolen cryptocurrency. Authorities are yet to establish any connections between the incidents, but they note a discernible pattern emerging.<\/p>\n\n\n\n
Crypto Thieves Are Going Traditional<\/h2>\n\n\n\n
While hackers can exploit DeFi protocols for massive crypto thefts, physically seizing crypto funds is rare. Most investors store their funds securely in custodial, non-custodial, or hardware wallets. However, hardware wallet providers' practice of encouraging users to keep backup seed phrases on paper provides a target for thieves breaking into homes.<\/p>\n\n\n\n
Interestingly, law enforcement's guidance to concerned crypto holders is to rely on centralization: \"Store your valuables and financial data in a secure place, such as a safety deposit box at a financial institution,\"<\/em> stated the RCMP.<\/p>\n","post_title":"Canadian's Private Keys Are At Risk, Says Police","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"canadians-private-keys-are-at-risk-says-police","to_ping":"","pinged":"","post_modified":"2023-07-24 11:58:35","post_modified_gmt":"2023-07-24 01:58:35","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12659","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12501,"post_author":"15","post_date":"2023-07-14 23:41:03","post_date_gmt":"2023-07-14 13:41:03","post_content":"\n
Despite a chaotic 2022, cryptocurrency has made a remarkable recovery in 2023. Digital assets show a significant price increase and cryptocurrency-related scams are down this year.<\/p>\n\n\n\n

Chainalysis, a blockchain data company, reported <\/a>a 65% decrease in crypto-related crime this year compared to 2022. The analysis was conducted using data on the flow of digital assets to illicit entities.<\/p>\n\n\n\n
\n
$\"Crypto$ <\/figure>\n<\/figure>\n\n\n\n
\u201cScams are nearly always the highest-revenue form of cryptocurrency-based crime, and while that\u2019s the case so far in 2023, total scam revenue has plummeted compared to last year<\/em>,\u201d the company said. <\/p>\n\n\n\n
According to Chainalysis, crypto scammers have generated 77% less revenue compared to the same period in 2022. Despite the increase in digital asset prices, the decline is significant, considering that rising prices benefit criminal organizations.<\/p>\n\n\n\n
The firm added: \u201cUsually, positive price movements translate to higher scam revenue, likely because increased market exuberance and FOMO make victims more susceptible to scammers\u2019 pitches. But 2023\u2019s drastic scam decline bucks that long-standing trend.\u201d<\/em><\/p>\n\n\n\n
Scams are on the decline, but Ransomware is not<\/h2>\n\n\n\n
Inflows to illicit addresses have decreased across various categories, with scams being the most affected form of crypto crime. In 2023, crypto scammers have received approximately $3.3 billion less than in 2022, totalling just over $1.0 billion. <\/p>\n\n\n\n
However, ransomware attacks are on track to grow this year, with an increase of $175.8 million compared to the same period in 2022. This reversal suggests a change in the downward trend of ransomware observed in 2022. Further analysis will explore the reasons behind the decline in scams and the increase in ransomware activity in 2023.<\/p>\n","post_title":"Midyear 2023 Update Highlights Significant Drop In Crypto Crime","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"midyear-2023-update-highlights-significant-drop-in-crypto-crime","to_ping":"","pinged":"","post_modified":"2023-07-14 23:41:10","post_modified_gmt":"2023-07-14 13:41:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12501","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":12386,"post_author":"15","post_date":"2023-07-08 18:41:30","post_date_gmt":"2023-07-08 08:41:30","post_content":"\n
In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi. <\/p>\n\n\n\n
According to a report <\/a>by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.<\/p>\n\n\n\n
\"In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,\"<\/em> the report says. \"$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.\"<\/em><\/p>\n\n\n\n
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.<\/p>\n\n\n\n
$\"Top$ <\/figure>\n\n\n\nHighlights of Crypto Losses in Q2 2023<\/h2>\n\n\n\n
\n
Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.<\/li>\n\n\n\n
Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.<\/li>\n\n\n\n
DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.<\/li>\n\n\n\n
Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.<\/li>\n<\/ul>\n","post_title":"DeFi Hacks Soar To $265 Million in Q2, 2023","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-hacks-soar-to-265-million-in-q2-2023","to_ping":"","pinged":"","post_modified":"2023-07-08 18:41:36","post_modified_gmt":"2023-07-08 08:41:36","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=12386","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9633,"post_author":"16","post_date":"2023-01-29 16:18:23","post_date_gmt":"2023-01-29 05:18:23","post_content":"\n
The US Federal Bureau of Investigation (FBI) believes that it was North Korean hackers who were behind the breach of the Harmony Horizon bridge<\/a> and the theft of $100 million.<\/p>\n\n\n\n
\n
The amount stolen from the Horizon bridge exploits included 13,100 ETH (approximately $14.1 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518K), and many other ERC-20 tokens<\/a>. This takes many tokens from circulation, causing them to drop in price.
<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Lazarus, The North Korean Hacker Group Involved In Recent Japanese Phishing Scam<\/a><\/p>\n\n\n\n
\n
APT38 and Lazarus Group are behind this severe incident. It is known that the majority of cryptocurrency in North Korea is used to develop national defence, ballistic missiles, and weapons of war.
<\/li>\n\n\n\n
For those interested in blockchain and cryptocurrency, this act of North Korea is extraordinarily extreme and inhumane. Compared to South Korea, a country actively developing with the WEB3 and Metaverse industries<\/a>, its neighbour North Korea is taking advantage and armed up using this industry.
<\/li>\n\n\n\n
Could this is some plan from North Korea to turn the cryptocurrency market into a \"new front\" to expand this country's position?<\/li>\n<\/ul>\n\n\n\n
See Related: <\/em><\/strong>Singapore Police Cautions Investors Against FTX Phishing Scams<\/a><\/p>\n","post_title":"The North Korean Corporation Behind The 100M$ Hack","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-north-korean-corporation-behind-the-100m-hack","to_ping":"","pinged":"","post_modified":"2023-01-29 16:18:26","post_modified_gmt":"2023-01-29 05:18:26","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9633","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":9115,"post_author":"15","post_date":"2022-12-29 22:22:50","post_date_gmt":"2022-12-29 11:22:50","post_content":"\n
After FTX's demise, investors are getting out of centralized exchanges and welcoming decentralized finance<\/a> platforms.<\/p>\n\n\n\n
\n
Investors started pulling out their cryptocurrencies off of centralized exchanges after FTX's scandal<\/a> hit front page. It becomes a bother leaving your assets in the hands of a centralized entity. Holders are leaning toward self-custody practices while traders are engaging and willing to learn how to navigate the defi (decentralized finance) space.<\/li>\n<\/ul>\n\n\n\n
\n
As centralized exchanges are vulnerable to risks like bankruptcy, the defi platforms are a feeding ground for hackers. According to the data of\u00a0 DefiLlama<\/a>, the largest multi-chain defi TVL (total value locked<\/a>) aggregator, defi-related hacks account for $3.24 billion in 2022 alone. Overall, there is $5.00 billion worth of hacked defi funds wherein the $2.53 billion was due to bridge<\/a> exploits.\u00a0<\/li>\n<\/ul>\n\n\n\n
$\"\"$
The monthly chart of defi-related hacks (courtesy of DefiLlama<\/a>)<\/figcaption><\/figure>\n\n\n\n
\n
Despite growing concerns on whether it is safe engaging with defi platforms, defi-related hacks this month is significantly low. It is notable that in December this year, the total value exploited was $17.71 million as of writing. Which is only 2.5% of the total amount hacked during October 2022. It is not clear yet what caused the decline but it shows us that defi platforms are learning from the mistake of unfortunate others. <\/li>\n<\/ul>\n\n\n\n
\n
Regardless of hack risk, crypto\u00a0 projects would rather get hacked than pay bounties<\/a>. In a\u00a0 tweet<\/a>\u00a0by a Web3 developer, he claimed that he found a vulnerability in a Solana smart contract<\/a>. According to the dev, he reported and helped fix the problem. But when he requested a reward, the project started ignoring him. <\/li>\n<\/ul>\n\n\n\n
<\/p>\n","post_title":"DeFi-Related Hacks Declines In December","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"defi-related-hacks-declines-in-december","to_ping":"","pinged":"","post_modified":"2023-04-10 17:47:33","post_modified_gmt":"2023-04-10 07:47:33","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=9115","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":8296,"post_author":"12","post_date":"2022-11-13 18:46:43","post_date_gmt":"2022-11-13 07:46:43","post_content":"\n
After Sam Bankman-Fried had stepped down as CEO, John Ray who is the new CEO of FTX made a statement on Twitter in relation to hundreds of millions being drained from the exchange.<\/p>\n\n\n\n
\n
FTX has experienced turmoil in the past few days, going from their assets being \"fine\" to filing for bankruptcy<\/a> just days later.<\/li>\n<\/ul>\n\n\n\n
\n
John Ray who has taken SBFs place as CEO let Twitter know<\/a> that \"as widely reported, unauthorized access to certain assets has occurred.\" \"We have been in contact with, and are coordinating with law enforcement and relevant regulators,\"<\/em> he added.<\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> From Bad To Good To Worse: The Binance And FTX Saga<\/a><\/p>\n\n\n\n
\n
The admin of FTX Community Chat warned<\/a> users of the FTX app were warned to delete it as malware had compromised the application. The admin advised them to stay off of the FTX site too as it may download trojans.<\/li>\n<\/ul>\n\n\n\n
\n
With millions being drained from users' accounts by the second as the hack progressed, many users saw account balances falling to $0. Although an FTX admin reported<\/a> that \"Not all hope is lost. Engineers have managed to retrieve a substantial amount of funds.\" With a reported<\/a> total of $650M being drained. <\/li>\n<\/ul>\n\n\n\n
\n
Although looking from the outside, FTX had started moving assets to cold storage to \"mitigate damage upon observing unauthorized transactions.\"<\/em> The total number of assets lost in the hack is still unknown, but users should take this into account when estimating this figure.<\/li>\n<\/ul>\n\n\n\n
\n
It was found that Kraken was potentially used to offload the funds of the hack, CSO of Kraken Nick Percoco stated<\/a> that \"We know the identity of the user.\" With many believing this could have been an inside job.<\/a><\/li>\n<\/ul>\n\n\n\n
See Related:<\/em><\/strong> Justin Sun Deploys A Pathway Out For TRON Tokens On FTX<\/a><\/p>\n","post_title":"Bankrupt FTX Investigates $650M Hack, Users Warned To Delete FTX App","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"bankrupt-ftx-investigates-650m-hack-users-warned-to-delete-ftx-app","to_ping":"","pinged":"","post_modified":"2022-11-14 21:21:58","post_modified_gmt":"2022-11-14 10:21:58","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=8296","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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