• Fri. Aug 18th, 2023

New Bitcoin Exchange Hack

Aug 18, 2023
New Bitcoin Exchange Hack
Marcel Bich

Fraudsters have devised a scheme to trick cryptocurrency exchanges, exploiting system errors to fake transactions and steal funds. SlowMist analysts identified this type of money theft, emphasizing that it exploits network characteristics rather than blockchain vulnerabilities.

Cryptocurrency Exchange Under Siege: Safeguarding Assets Amid Rising Hackers‘ Tactics

The hackers employ various tactics, including creating ad hoc transactions and generating multiple transfers, leading to double spending. One such method involves exploiting The Open Network’s properties, allowing attackers to receive refunded funds minus commissions.

To combat these attacks, exchanges are urged to implement multiple security measures, such as strict transaction comparison, risk control systems, and manual verification for large transfers. In addition, temporary withdrawal restrictions for deposited funds are recommended.

In just the first half of the year, cryptocurrency hackers have successfully laundered about $244.5 million in cryptocurrency. The attackers laundered the most as part of the Harmony Bridge cross-chain hack (about $100 million).

The second place was occupied by the incident around Atomic Wallet: here hackers were able to launder $65 million, although according to Elliptic, about $100 million was stolen in total. The top three in terms of laundered cryptocurrency was closed by the Uranium Finance project, which lost $12.8 million in cryptocurrency.

With hackers becoming increasingly sophisticated, it is crucial for cryptocurrency exchanges to remain vigilant and adopt robust security measures to protect their users and assets.