Cryptocurrency Hacks, Glitches, Rug Pulls, and Scams in 2024
Introduction
The year 2024 has been a tumultuous one for the cryptocurrency industry, marked by a series of high-profile hacks, glitches, rug pulls, and scams. Despite advancements in blockchain technology and increased security protocols, the crypto world remains a battleground for sophisticated cyber threats and exploits. This article provides a comprehensive overview of the major security breaches and fraudulent activities that have rocked the cryptocurrency space in 2024.
Major Hacks and Exploits
1. Orbit Chain Hack
The year began with a shocking breach at Orbit Chain on January 2, 2024, resulting in the loss of $80 million. This hack set a concerning tone for the year, highlighting persistent vulnerabilities within the crypto sphere.
2. Radiant Capital Compromise
Just a day later, Radiant Capital suffered a compromise on January 3, 2024, losing $4.5 million. These early incidents underscored the critical necessity for heightened security measures in the evolving cryptocurrency industry.
3. PlayDapp Breach
In February 2024, PlayDapp experienced a significant breach, with hackers absconding with $290 million over two separate incidents on February 9 and February 12. This breach was one of the largest in the first quarter of the year.
4. Kraken Security Incident
Kraken's security was compromised on June 19, 2024, when a self-proclaimed security researcher exploited a zero-day vulnerability, resulting in a $3 million loss. This incident highlighted the ongoing risks associated with multisig wallets and private key management.
Rug Pulls and Exit Scams
Rug pulls and exit scams have continued to plague the cryptocurrency space, with several high-profile incidents in 2024.
1. Mutant Ape Planet (MAP) NFTs
The developer of the Mutant Ape Planet (MAP) NFT collection executed a rug pull, making off with $2.9 million. The developer, Aurelien Michel, was arrested and charged with fraud after admitting to the rug pull in the community's Discord channel.
2. Trusted Stations
Trusted Stations, a fraudulent trading platform, scammed investors by promising high returns and then disappearing with their funds. Victims reported being asked to upgrade their accounts and send additional funds, only to find that their accounts were wiped clean.
3. Coinrus.com Scam
Coinrus.com manipulated trade results to lure investors into depositing more funds. Victims reported losing significant amounts, with one individual losing over $200,000 after being pressured to invest more and then being unable to withdraw their funds.
Glitches and Technical Failures
Technical glitches and failures have also contributed to the losses in the cryptocurrency space in 2024.
1. WazirX Exploit
On July 18, 2024, Indian crypto exchange WazirX suffered an exploit totaling $235 million. The attack was linked to the North Korea-backed Lazarus Group, which laundered the funds via crypto mixing tools like Tornado Cash.
2. LiFi Protocol Exploit
The LiFi protocol experienced a $10 million smart contract exploit in July 2024. This incident was particularly concerning as the platform had suffered a similar attack in March 2022, indicating ongoing vulnerabilities.
Scams and Fraudulent Activities
Scams and fraudulent activities have continued to target unsuspecting investors, with several notable incidents in 2024.
1. Elon Musk Impersonator
A scammer impersonating Elon Musk contacted victims on Facebook Messenger, asking them to invest in his company and pay in cryptocurrency or through PayPal. The scammer exploited Musk's high profile to gain access to victims' systems and personal information.
2. Crypto4Winners
Crypto4Winners, a fraudulent trading platform, lured investors with promises of high returns. Victims reported losing their investments after being asked to send additional funds for account upgrades and then being unable to withdraw their money.
Conclusion
The cryptocurrency landscape in 2024 has been marred by a series of high-profile hacks, glitches, rug pulls, and scams. These incidents underscore the critical need for enhanced security measures and increased vigilance within the crypto community. As the industry continues to grow and evolve, it is essential for investors to conduct thorough research and exercise caution when engaging with new projects and platforms. By staying informed and adopting best practices, the crypto community can work towards mitigating the risks and safeguarding their assets in this dynamic and rapidly changing environment.
Citations:
[1] https://www.ccn.com/education/crypto/crypto-hacks-exploits-full-list-scams-vulnerabilities/
[2] https://www.reuters.com/technology/crypto-hacking-thefts-double-14-bln-first-half-researchers-say-2024-07-05/
[3] https://cryptoslate.com/crypto-projects-lose-278-million-to-july-hacks-second-highest-in-2024/
[4] https://dfpi.ca.gov/crypto-scams/
[5] https://www.securities.io/5-worst-rug-pulls-in-crypto/
