An In-Depth Examination of the Top 5 Crypto Hacks in 2024 (Up to Now)
In January 2024, the cryptocurrency world was rocked by a series of major hacks that resulted in a total loss of $38.9 million. These hacks exploited vulnerabilities in smart contracts, utilized flash loan attacks, and took advantage of flaws in user input validation. Despite these significant losses, the crypto community remains hopeful and is actively working to enhance security measures.
As we enter the new year, the aftermath of these security incidents has left the cryptocurrency community reeling, with a staggering $38.9 million lost in January 2024. Quantstamp, a leading Web 3 security platform, has meticulously documented these events, shedding light on the gravity of the situation.
Now, let’s delve deeper into the five most significant smart contract hacks that have sent shockwaves through the crypto space.
Gamma Strategies: Exploiting $3.4 Million
On January 4, Gamma Strategies, a protocol specializing in liquidity management and market-making on the Ethereum network, fell victim to a $3.4 million exploit. The attacker manipulated transactions, managing to secure 1535 ETH, equivalent to approximately $3.4 million. The clever conversion of funds from USDT to ETH allowed the attacker to bypass potential freezes. Notably, the attacker discreetly deposited over $1.65 million into the popular currency mixer, Tornado Cash.
Radiant Capital: Flash Loan Incident Resulting in $4.5 Million Loss
Radiant Capital, a cross-chain lending protocol, experienced a $4.5 million exploit on Arbitrum. A flash loan attack targeted a newly introduced USDC Coin (USDC) market, causing a temporary halt in lending and borrowing activities. The attacker took advantage of a known rounding issue, manipulating the index parameter. With precision errors amplified, the attacker executed repeated deposit() and withdraw() operations, remarkably draining the new USDC market deployment within just six seconds.
Socket Protocol: Drained of $3.3 Million
Socket, a prominent blockchain interoperability protocol, suffered a security breach that led to losses exceeding $3.3 million. The breach exploited a vulnerability in user input validation, enabling attackers to exploit wallets that had granted infinite approvals to Socket contracts. The flaw was traced back to a specific route added three days prior to the attack, affecting over 200 wallets. The team responded promptly by releasing a recovery plan that assured affected users of 100% reimbursement for their lost crypto. The funds were swiftly converted into Ether, Polygon’s Matic token, wrapped versions of Bitcoin and Ethereum, and MakerDAO’s Dai stablecoin, showcasing the complexity of the attack.
Wise Lending: DeFi’s First Major Hack in 2024
Wise Lending, a distinguished Web3 lending application and yield aggregator, fell victim to a flash loan attack due to a contract vulnerability, resulting in a loss of approximately $464,000. This incident marks one of the first significant DeFi hacks of 2024. The exploit was attributed to a flaw in Wise Lending’s shared accounting logic, which was manipulated through a precision issue to drain the platform’s funds.
Goledo Finance: A $1.7 Million Breach
Operating on Conflux eSpace, Goledo Finance experienced a significant security breach in its lending and borrowing market on January 28. After detecting irregularities within its lending pool, the company promptly suspended it to prevent further unauthorized access. The individual responsible for the $1.7 million hack reportedly contacted Goledo Finance for negotiations, leaving users anxiously awaiting updates. The team responded proactively by releasing a reimbursement plan after the hack.
Despite these challenges, the crypto community remains optimistic and is determined to pave the way for a safer future. Efforts are already underway to strengthen security measures and ensure a smoother year ahead.
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