Crypto thefts are hitting new highs, and the latest incident underscores this alarming trend. Recently, hackers stole a staggering $32.4 million worth of spWETH, a token tied to staked Wrapped Ether.
This crime is just one of several that have occurred in Europe in recent months, as fraudsters focus more on digital assets. With the value of cryptocurrencies increasing, 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 directed against individuals working or operating in the cryptocurrency space.
Those are armed robberies wherein usually, a hostage is held at gunpoint and forced to hand over his/her digital assets. In this sense, the growing cases only point out to the increasing danger that players in the crypto world face, especially professional traders and other personalities in this field.
ZachXBT noted that Western Europe has recently turned out to be a hotspot for such violent robberies, with multiple known bitcoin traders getting robbed. That being said, there have even been shootings during the robberies in the past couple of 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 TRM Labs research, hackers stole almost $1.4 billion in cryptocurrencies in the first half of 2024 alone—twice the amount stolen during the same period last year.
But most striking is that average amounts stolen in an attack have gone up by 150%. Centralized finance platforms have been very popular, accounting for an astonishing 70% of all losses. The trend is such that with climbing crypto values comes an increasing number of hackers looking to cash out.
1/ ✦ Surge in Crypto Trader Robberies in Western Europe:
On-chain investigator ZachXBT, as reported by Wu, has highlighted a rise in offline robberies targeting crypto traders across Western Europe.
— ZoneCrypto (@_ZoneCrypto_) September 28, 2024
The largest heists this year include DMM Bitcoin, which lost over 4,500 bitcoins worth around $305 million. Large-scale thefts are not isolated incidents; they are the result of a deliberate strategy by cybercriminals to exploit flaws in centralized systems. The methods employed frequently involve compromising private keys or exploiting flaws in smart contracts.
A Shift In Tactics
It is very interesting that, as the year continues, decentralized banking systems were later on attacked while the focus had shifted to centralized exchanges. Such a development holds the view that attackers are tailoring their operations based on where they see the most opportunity. Recently, attacks have made people sit and ask what security procedures these platforms use.
Germany’s law enforcement has taken significant steps to combat this issue by seizing 47 digital currency exchanges believed to be facilitating money laundering for cybercriminals. The trades were anonymous, which allowed the users to engage in the activities with a low risk of being uncovered. Officials claimed that they will continue with the tracking of transactions and gathering of information from these sites and will use it in punishing the culprits.
Featured image from GV Wire, chart from TradingView