BingX Leads in $120M Crypto Hack Losses Among Centralized Exchanges in September

• The cumulative losses from cryptocurrency hacks surpassed $120 million in September, marking a crucial period for centralized exchanges.
• Centralized exchanges such as BingX and Indodax absorbed most of the financial damage, accounting for the majority of the reported losses.
• The blockchain investigation firm Peckshield reveals significant insights into the extent and impact of these hacks.

Discover the critical details and repercussions of the September 2024 cryptocurrency hacks that led to substantial financial losses.

September 2024 Cryptocurrency Hacks: An Overview

Totaling over $120 million, the losses from September’s cryptocurrency hacks constitute a notable part of the crypto financial landscape. Centralized exchanges like BingX and Indodax were the primary targets, suffering significant breaches that accounted for more than half of the total losses. This month marked the second-lowest in terms of financial damage from hacks in 2024, only overshadowed by April.

The Vulnerability of Centralized Exchanges

Despite ongoing security enhancements, centralized exchanges continue to be lucrative targets for cybercriminals. In September, BingX experienced the highest individual loss, quantified at $44 million, while Indodax followed with a $21 million loss. These breaches underscored the persistent vulnerabilities within centralized platforms to sophisticated hacking attempts, prompting a reevaluation of security protocols.

Impact on the Decentralized Finance (DeFi) Sector

The decentralized finance (DeFi) sector wasn’t spared from these malicious activities. Noteworthy incidents included $27 million lost by DeFi protocol Penpie and substantial amounts siphoned from DeFi platform Delta Prime ($6 million), inflation data platform Truflation ($5.6 million), and crypto liquid restaking protocol Bedrock ($2 million). These breaches highlighted the diverse targets and the extensive reach of crypto hackers across various platforms.

Significant Cases and Recovery Efforts

Several hacked entities sought to mitigate their losses through various recovery efforts. For instance, crypto lender Shezmu initially lost $5 million but succeeded in recouping part of the funds via on-chain negotiations with the hacker. Additionally, Telegram bot Banana Gun announced plans to refund affected traders following its $3 million hack.

WazirX and its Struggle Post-July Hack

WazirX, the largest victim of crypto hacks in 2024 up to October, faced a monumental breach on July 18, losing $235 million due to a compromised Safe Multisig wallet on Ethereum. The repercussions were severe, leading to the suspension of all crypto and cash withdrawals for an internal investigation. Unfortunately, three months on, WazirX has yet to provide a clear compensation plan for its users.

Legal Contests and Financial Repercussions

Further complicating the recovery landscape, rival exchange CoinSwitch initiated a legal challenge against WazirX to recover assets worth approximately $6.2 million. Despite ongoing efforts, WazirX disclosed that 43% of customer funds are deemed irrevocably lost, illustrating the profound financial impact and complex recovery process involved in such large-scale breaches.

Conclusion

September 2024’s hacking incidents serve as a stark reminder of the inherent risks within the crypto ecosystem. Centralized exchanges like BingX and Indodax bore the brunt of the financial impact, while decentralized entities also faced significant losses. As these platforms strive to enhance their security measures, the crypto community must remain vigilant, adopting comprehensive security protocols to mitigate the risk of future incidents. The ongoing challenges faced by exchanges like WazirX underscore the need for robust recovery plans and transparent operational strategies moving forward.