Take a closer look at the recent data breaches across the crypto industry, what you should beware of, and how to minimize your risk of scams with VegaX’s latest research report. This report reviews recent data breaches through March 2022 — download the full report below.
Recent Data Breaches in the Crypto Industry
The digital asset industry is still in its early stages of development — and while users continue to be attracted to the high yields, low fees, and speedy transaction times — the industry is also synonymous with volatility, opacity, and the potential for scams.
This is no secret: in 2022 the crypto market has been trading sideways (at best) and has tended to be bearish overall, making it difficult for most participants to generate profit. Everyone is working hard these days, including scammers, hackers, and phishers…
The first three months of this year have seen 30+ organizations in (or closely affiliated with) the digital asset industry suffer data breaches — compromising sensitive client information, and in some cases, leading to outright theft of digital assets.
Let’s review some of these incidents:
On January 17th, Hong Kong-based exchange Crypto.com suffered an attack in which the platform’s 2FA (two-factor authentication system) was compromised, leading to unauthorized withdrawals from 483 user accounts with losses totaling roughly $33.83 million. ( 1 ) The Crypto.com team subsequently released a statement on January 20th indicating that all affected customer accounts were made whole and that a new 2FA infrastructure was implemented. ( 2 )
Recent attacks on the crypto industry have not been limited to currency: on 02/19/2022, roughly 254 tokens were stolen from users on OpenSea, one of the world’s largest NFT marketplaces, with losses totaling around $200 million. Following the attacks, OpenSea CEO Devin Finzer published a series of tweets outlining the events –
- First, customers were targeted with malicious emails. From there the attacker(s) were able to acquire passwords & other sensitive information that allowed them to gain access to the user’s accounts.
- Next, while engaging with the protocol, prospective victims signed a partial contract with general authorization, and large portions were left blank. As soon as it was signed, hackers would then complete the contract with their contract transferring ownership of the NFT without payment. ( 3 )
In addition to direct attacks on Crypto industry organizations & platforms, malicious actors have also been targeting crypto organizations’ trusted 3rd party vendors…
- What actually happened in Q1 2022 with crypto data breaches?
- What are industry leaders doing in response to the increased incidences?
- What are some ways that you can minimize your risk of scams?
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