{"id":9236,"date":"2025-03-03T07:30:56","date_gmt":"2025-03-03T06:30:56","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=9236"},"modified":"2025-03-03T07:30:56","modified_gmt":"2025-03-03T06:30:56","slug":"crypto-faceplants-february-sees-1-5b-drain-due-to-hacks-and-scams-including-bybit-breach-says-certik","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/03\/03\/crypto-faceplants-february-sees-1-5b-drain-due-to-hacks-and-scams-including-bybit-breach-says-certik\/","title":{"rendered":"Crypto Faceplants: February Sees $1.5B Drain Due to Hacks and Scams, Including Bybit Breach, Says CertiK"},"content":{"rendered":"

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Financial losses due to crypto frauds, breaches, and hacks reached approximately $1.53 billion in February, with the $1.4 billion Bybit breach constituting the majority of the losses, as reported by blockchain security company CertiK.<\/p>\n

The attack on Bybit by North Korea\u2019s Lazarus Group on February 21 marked the most significant crypto hack to date, surpassing the $650 million Ronin bridge breach<\/a> from March 2022, \u201cwhich was also executed by Lazarus,\u201d CertiK indicated in a post on X dated February 28 .<\/a><\/p>\n

The lost crypto in February signifies an astonishing increase of nearly 1,500% compared to the $98 million reported<\/a> by CertiK in January. Nevertheless, if we exclude Bybit\u2019s losses, the total remaining crypto losses for last month amounted to over $126 million, still reflecting a 28.5% rise.<\/p>\n

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Bybit experienced the most substantial loss in February, succeeded by stablecoin payment provider Infini, and then the decentralized lending platform ZkLend. Source: <\/em>CertiK<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Bybit disclosed that the attackers gained access to a storage wallet. The FBI subsequently confirmed<\/a> industry analysis indicating that North Korea was responsible for the attack and had begun to convert the pilfered crypto and distribute it \u201cacross thousands of addresses on various blockchains.\u201d<\/p>\n

CertiK remarked that the second most significant event of the month<\/a> was the February 24 breach of the stablecoin payment firm Infini that resulted in a loss of $49 million.<\/p>\n

In a report dated February 27 ,<\/a> CertiK noted that a crucial wallet utilized in the assault had previously participated in the development of Infini contracts and had retained administrative rights to redeem all Vault tokens<\/a>.<\/p>\n

\u201cThe breach reveals a significant vulnerability, illustrating how administrative privileges can represent a single point of failure,\u201d the report from CertiK states. \u201cOne critical principle of blockchain safety is the understanding of how to secure your private keys.\u201d<\/p>\n

The Infini team presented the hacker a proposal to keep 20% of the stolen assets if the remainder was returned, including an assurance that the hacker wouldn\u2019t encounter any legal repercussions.<\/p>\n

A timeline of 48 hours was established, which has long elapsed, and according<\/a> to Etherscan, the wallet<\/a> used by the hacker still holds a balance exceeding 17,000 Ether (ETH<\/a>) valued at $43 million.<\/p>\n

\"Cryptocurrencies,
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Source: <\/em>Infini<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

No public disclosure has been made regarding whether the hacker intends to accept the proposal and return any funds.<\/p>\n

Related: <\/strong><\/em>Bybit hackers resume laundering activities, moving another 62,200 ETH<\/strong><\/em><\/a><\/p>\n

The decentralized lending protocol ZkLend encountered the third largest breach<\/a> in February, losing $10 million to hackers on February 12.<\/p>\n

In summary, CertiK reports that the primary category for losses in February was wallet breaches, followed by code vulnerabilities, which caused $20 million in losses, and phishing attacks, which led to hackers pilfering $1.8 million.<\/p>\n

Financial losses due to crypto scams, breaches, and hacks exhibited a downward trend in the concluding days of 2024, with December documenting the lowest amount stolen<\/a> at $28.6 million, contrasted with $63.8 million in November and $115.8 million in October.<\/p>\n

Magazine: <\/strong><\/em>SCB predicts $500K BTC, SEC postpones Ether ETF options, and more: Hodler\u2019s Digest, Feb. 23 \u2013March. 1<\/strong><\/em><\/a><\/p>\n