Crypto-hacking activities declined in February, but over $100 million was still stolen

Cryptocurrency platforms witnessed a notable decline in hacking incidents during February, although cyber attackers managed to abscond with over $100 million in digital assets. Despite the decrease in frequency, the persisting threat underscores the ongoing challenges in bolstering cybersecurity within the crypto industry.

Decrease in hacking incidents

Blockchain security firm PeckShield reported that hacking incidents targeting cryptocurrency platforms were reduced by nearly half in February compared to the previous month. Although the frequency decreased, the magnitude of losses remains significant, with hackers still succeeding in stealing over $100 million in digital assets.

In January 2024, hackers orchestrated over 30 attacks, resulting in the theft of cryptocurrencies valued at approximately $182.54 million. This marked a staggering 771.39% increase compared to January 2022, reflecting the growing sophistication of cyber attacks within the crypto space. However, in February, the total stolen funds amounted to $104.73 million across more than 20 attacks, indicating a 42% decrease compared to the previous month.

Key victims and incidents

Among the prominent victims of February’s cyber attacks were PlayDapp, FixedFloat, and Axie Infinity co-founder Jeff “Jihoz” Zirlin. PlayDapp suffered a loss of $36 million on February 9, followed by FixedFloat, which lost $25.8 million on February 18. Axie Infinity co-founder Jeff Zirlin was also targeted, with hackers exploiting the platform for $9.7 million on February 23. 

Additionally, ShidoGlobal and Seneca were impacted by significant breaches, with ShidoGlobal experiencing a $7.3 million loss on February 29, causing its native token to plummet over 80% in just five minutes. Seneca faced a theft of $6.9 million on February 28, although the hacker returned $5.3 million to the protocol the following day, retaining a 20% bounty.

Challenges and implications

The persistent threat of cyber attacks highlights the critical need for enhanced cybersecurity measures within the cryptocurrency industry. Despite efforts to fortify platforms against malicious actors, hackers exploit vulnerabilities, resulting in substantial financial losses for both platforms and investors. 

The incidents are a stark reminder of the inherent risks associated with digital asset management and the urgency of implementing robust security protocols to safeguard against potential breaches.