Crypto thefts are reaching new highs, and the latest incident underlines this alarming trend. Recently, hackers stole a whopping $32.4 million worth of spWETH, a token tied to staked Wrapped Ether.
This crime is just one of many that have occurred in Europe in recent months as fraudsters focus more on digital assets. As the value of cryptocurrencies increases, it appears that these attacks are becoming more regular and profitable.
Blockchain Sleuth notes increase in crypto crimes
Crypto detective ZachXBT has noticed the growing number of physical robberies targeting individuals who work or operate in the cryptocurrency space.
These are armed robberies in which a hostage is usually held at gunpoint and forced to hand over his/her digital assets. In this sense, the growing cases only point out the increasing danger faced by players in the crypto world, especially professional traders and other personalities in this field.
ZachXBT noted that Western Europe has recently emerged as a hotspot for such violent robberies, with several well-known bitcoin traders being robbed. That said, there have even been shootings during robberies in recent months.
As of today, the market cap of cryptocurrencies stood at $2.19 trillion. Chart: TradingView.com
The rising tide of cybercrime
According to a study by TRM Labs, hackers stole nearly $1.4 billion worth of cryptocurrencies in the first half of 2024 alone – twice the amount stolen in the same period last year.
But most strikingly, the average amounts stolen in an attack have increased by 150%. Centralized financing platforms are very popular and responsible for as much as 70% of all losses. The trend is such that in climbing crypto values There are more and more hackers who want to make money.
1/ ✦ Increase in robberies of crypto traders in Western Europe:
On-chain researcher ZachXBT has, as reported by Wu, highlighted an increase in offline heists targeting crypto traders across Western Europe.
— ZoneCrypto (@_ZoneCrypto_) September 28, 2024
The biggest heists this year include DMM Bitcoin, which lost more than 4,500 bitcoins worth about $305 million. Major thefts are not isolated incidents; they are the result of a deliberate strategy by cybercriminals to exploit flaws in centralized systems. The methods used often involve compromising private keys or exploiting flaws in smart contracts.
A shift in tactics
It is very interesting that, as the year progresses, decentralized banking systems were later attacked while the focus had shifted to centralized exchanges. Such a development means that attackers are tailoring their operations to where they see the greatest opportunities. Lately, attacks have caused people to wonder what security practices these platforms use.
German law enforcement has taken significant steps to combat this problem by seizing 47 digital currency exchange offices believed to facilitate money laundering for cybercriminals. The transactions were anonymous, allowing the users to participate in the activities with a low risk of being discovered. Officials claimed that they will continue to monitor transactions and collect information from these sites and use it in punishing the perpetrators.
Featured image of GV Wire, chart from TradingView