Another Cryptocurrency Attack! What makes them a Desirable Target

• In 2022, hackers stole a total of $3.8 billion in Cryptocurrencies.

• The majority of the victims of these hacks are in the United States.

• Are Cryptopreneurs more concerned with developing and releasing their coins than protecting their company.

The market for digital currencies is expanding quickly, with more than 420 million users, more than 12,000 cryptocurrencies in circulation, and an expected value of US$2.2 billion by 2026. Yet, because of its quick development, it has become a target for online criminals attempting to scam people. 

What draws hackers to Cryptocurrencies? 

With market values of $330.6 billion, $152.6 billion, and $68.2 billion for Bitcoin, Ethereum, and Tether, respectively, cryptocurrency traders and wallets can be a tempting target for hackers. Blockchain data company Chainanalysis claimed that in 2022, crypto hackers stole a total of $3.8 billion in cryptocurrencies.

Malicious actors stole $162.5 million by accessing the hot wallet of bitcoin market provider Wintermute in September 2022. A cryptocurrency wallet that is accessible online and allows for transactions between its owner’s wallet and that of others is referred to as a “hot wallet.” Hackers achieved this by taking advantage of a flaw in the Profanity tool’s private keys. Private keys are a secure code that allows the owner of a cryptocurrency wallet to conduct transactions and prove ownership of the wallet. But, if these keys are compromised, it can provide nefarious parties access to a cryptocurrency wallet.

Which malware attacked crypto investors 

Two new dangerous computer programs transferred by unidentified sources that specifically target desktop crypto investors have been discovered by Malwarebytes anti-malware software.

The MortalKombat ransomware and Laplas Clipper virus have been actively crawling the internet and stealing cryptocurrency from vulnerable investors since December 2022, according to threat research firm Cisco Talos. As mentioned earlier, the majority of the campaign’s victims are in the United States, with smaller proportions in the United Kingdom, Turkey, and the Philippines.

This Malware scan data kept in the user’s clipboard, which is typically a string of characters and numbers that the user has copied. When wallet addresses are copied to the clipboard, the malware recognises them and replaces them with a different address. 

The attack is executed when users fail to pay attention to the sender’s wallet address, which would result in the cryptocurrency being sent to an unnamed attacker.

Why are Crypto Companies more Vulnerable to Attacks

Although the first cryptocurrency, eCash, was developed by Digicash in 1990, it wasn’t until the launch of Bitcoin in 2009 that cryptocurrency became widely accepted. The desire to enter the market may indicate that so-called cryptopreneurs are more concerned with developing and releasing their coin than protecting their company, given that there are about 100 new cryptocurrencies generated and minted every day.

Hackers stole $415 million worth of cryptocurrencies from the defunct FTX exchange, it was revealed in January of this year. After FTX attorneys and consultants identified $5.5 billion in assets that needed to be recovered, with the stolen bitcoin making up around a tenth of those assets, the loss was found. 

Prosecutors observed that more than $370 million in cryptocurrencies had “vanished from the exchange,” The international news organization Insider speculated that the stolen cryptocurrency “may be linked to a cyberattack that took place just hours after FTX filed for bankruptcy.”

Since December 2022, attacks have occurred on both small and large organisations, as well as private individuals, have been impacted. A malicious email attachment in a message is usually how the malware spreads. 

The email, which has a cryptocurrency theme, states that one of your payments “timed out” and needs to be resent. Given how long it can take for some bitcoin payments to process, receivers may become more interested in this.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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