Another week, another sorry tale of blockchain hacks

• In terms of scale, the $200 million Mixin Network cloud service provider database hack stood out.
• Security vulnerabilities and phishing incidents were the most utilized attack vectors.

While the extended bear market continues to test the patience of crypto enthusiasts, it has not been able to safeguard the blockchain industry from the predatory intentions of hackers.

No respite from security breaches

According to blockchain security firm SlowMist, multiple incidents of exploits were discovered in the last week, for the period ranging from 23 to 29 September. A total of 18 hacks resulted in the loss of cryptos worth more than $208 million.

SlowMist added that security vulnerabilities and phishing incidents were the most utilized attack vectors in the aforementioned period.

In terms of scale, the $200-million Mixin Network cloud service provider database hack stood out. As of this writing, the attack method was unknown and SlowMist was working with the affected party to unearth the root cause.

The Mixin team suspended trading activities on the network but assured users that a solution to recover the stolen assets was in the works.

The other high-profile target was the cryptocurrency exchange HKX, formerly Huobi. One of its hot wallets was compromised, resulting in a loss of $8 million worth of Ethereum [ETH].

HTX’s advisor Justin Sun said that losses incurred from the attack have been covered and users’ funds were safe.

 Broader data highlights the seriousness of the problem

The total amount of losses from blockchain-related hacks since 2012 shot up to nearly $31 billion at the time of writing. As shown below, 2019 and 2021 were the most targeted by unscrupulous players.

Source: SlowMist

While security incidents have evidently decreased in recent years, this was mostly due to the bear market and overall decline in funds locked in smart contracts. Nonetheless, 2023 witnessed its fair share of attacks, resulting in thefts worth nearly $2 billion.

These losses were a result of 318 hacking occurrences from the beginning of the year until press time.

SlowMist also analyzed the losses by category to ascertain which market sector was the most impacted by exploits. Cryptocurrency exchanges were the most attacked entities, accounting for nearly 36% of total losses. A total of 127 hacking incidents have been reported to date.

Additionally, the most favored mode of attacks by hackers were contract vulnerability, rug pulls, and flash loan attacks. Contract vulnerability accounted for nearly 13% of all hacking occurrences.

Source: SlowMist