Hackers steal $13 million from cryptocurrency exchange
Hackers struck again, this time breaking into centralized cryptocurrency exchange M2, where they stole $13.7 million in digital assets. In a statement released on October 31, M2 said it has resolved the situation and has refunded all customer funds.
“We assume full responsibility for any losses, demonstrating our commitment to protecting the interests of our customers. All services are operating normally, now with additional security controls,” stated the company.
The attackers managed to access digital wallets connected to the internet (hot wallets) and stole Bitcoin, Ethereum and Solana. ZachXBT, a well-known security researcher in the cryptocurrency community, shared information about the attack on November 1, revealing details about the stolen assets.
This attack comes just four months after a similar incident in which hackers stole more than $230 million from Indian exchange WazirX, marking the second biggest cryptocurrency hack of 2024.
Growing wave of attacks on cryptocurrencies
Attacks on cryptocurrency exchanges and platforms have become one of the biggest barriers to expanding the use of crypto on a large scale.
According to a report from Crystal Intelligence, as of June 2024, the industry has recorded approximately $19 billion in losses due to 785 hacking incidents. The biggest single theft to date was the Plus Token fraud scheme in 2019. At the time, criminals stole US$2.9 billion in Bitcoin and Ether.
In February 2024, a $290 million attack on the PlayDapp platform was the biggest hack of the year. Meanwhile, an investment scam on JPEX exchange in Hong Kong resulted in the loss of US$194.3 million, making it the largest fraud scheme of its kind.
Furthermore, data indicates that 2024 could surpass 2023 in volume of stolen cryptocurrencies, with the first quarter recording a 42% increase compared to the same period last year, totaling US$542.7 million in losses.
Centralized exchanges are the main target
Centralized exchanges, like M2, are among the most common targets for hackers due to the high value of assets they hold.
Although decentralized platforms also suffer from attacks, the biggest incidents often occur on centralized exchanges, where large volumes of assets remain vulnerable in internet-connected wallets. In 2023 and 2024 alone, the ten biggest hacks in decentralized finance (DeFi) totaled around US$579 million in losses.