Author: Revc, Golden Finance
The cryptocurrency market has provided investors with tremendous opportunities in the past year, but it has also faced severe challenges from scams and hacker attacks. At the beginning of the new year, these events have once again highlighted the importance of investors remaining vigilant, taking strong security measures, and using reliable tools. Here are some notable cases, crimes, and tracking processes, as well as protective measures that investors can take in the new year to help crypto investments move forward steadily.
Recent notable cases of crypto scams and hackers
1. DEXX hacking incident (November 2024)
- Event Overview: Decentralized exchange aggregator DEXX suffered a major vulnerability attack, with a loss of more than $20 million, and the target of the attack was Solana and other multi-chain wallets.
- Criminal process: Hackers exploited vulnerabilities in private key management to gain access to user wallets, affecting more than 8,600 wallets.
- Tracking process: Blockchain security company SlowMist tracked the stolen funds by analyzing transaction patterns and identified the affected wallets.
- Result: DEXX announced the launch of a compensation plan, emphasizing the importance of safely storing private keys.
2. DMM Bitcoin hacking incident (May 2024)
- Event overview: Japan's DMM Bitcoin exchange lost $305 million due to private key leakage and address disguise attacks.
- Criminal process: The attacker disguised himself as a legitimate address, deceived the wallet operator to transfer funds, and laundered money through mixing services such as CoinJoin.
- Measures taken:
- DMM suspended some services and promised to fully compensate users for their losses.
- The platform announced its closure after the incident and transferred user accounts to another exchange.
- Result: Despite the promise of compensation, the difficulty of recovering funds highlights the importance of operational security.
3. WazirX hack (July 2024)
- Overview: Indian exchange WazirX lost $234.9 million due to a multi-signature wallet vulnerability.
- Crime process: Hackers took advantage of the difference between transaction display and actual authorization to deceive platform administrators into approving malicious transactions.
- Tracking process: Security companies suspect that North Korea’s Lazarus Group is involved, and funds are quickly laundered.
- Result: WazirX’s reputation is damaged, and users are dissatisfied with the platform’s transparency.
4. Phishing and Rug Pull
- Case:
- Phishing: Attackers disguise themselves as legitimate wallets or exchanges to steal user login credentials.
- Rug Pull: Projects such as Squid Coin attract investment and then abscond with the money.
- Lessons: Always verify the source of the website, and investigate the project team and audit reports before investing.
5. Pig Killing Scam
- Criminal process: By building trust, victims are lured into participating in fake investments, which has caused losses of more than 3.6 billion US dollars.
- Impact: Remind investors to be highly vigilant about investment opportunities that guarantee high returns.
Criminal Tracking and Response Process
Blockchain Forensics
Security companies (such as Chainalysis, SlowMist, and PeckShield) track the flow of stolen funds by analyzing transaction flows and wallet connections, and work with exchanges to freeze illegal assets.
Law Enforcement Actions
In some cases, law enforcement agencies (such as the FBI) will directly intervene. For example, in a $230 million fraud case, the US government arrested suspects and recovered some assets.
Community and Platform Response
The platform may issue a bounty to incentivize the community to help recover funds and increase user vigilance through educational activities.
Investor Protection Measures
1. Use a secure wallet
- Hardware wallets: such as Ledger or Trezor, protect assets by storing private keys offline.
- MetaMask: Provides phishing detection and powerful dApp integration features.
2. Enable two-factor authentication (2FA)
Add an extra layer of security to your account and generate a one-time code through an authenticator app.
3. Monitor your account regularly
Check your account for unauthorized transactions or setting changes, and deal with them early.
4. Due diligence before investing
- Use tools such as Etherscan or Solscan to monitor the project's team background and activities.
- Check security audit reports and avoid high-risk projects.
5. Avoid oversharing
Never reveal private keys, mnemonics, or wallet details under any circumstances.
6. Stay vigilant
Be wary of unsolicited links and information, and avoid believing in promises of high returns.
Recommended security software
1. Metamask Snaps: Customized security features, phishing detection and real-time alerts.
2. CertiK Skynet: Real-time monitoring of blockchain activities and project security scores.
3. SlowMist EagleEye: Threat intelligence tool for phishing attacks.
4. Chainalysis KYT: Real-time monitoring of transaction risks.
5. De.Fi Shield: Review token authorization and enhance wallet security.
Summary
The high volatility and emerging nature of the crypto market make it a hotbed for scams and hackers. While blockchain analytics and security tools have significantly enhanced the industry's ability to resist risks, investors still need to take proactive measures to protect their assets. By maintaining information sensitivity, using reliable tools, and investing rationally, users can more safely seek opportunities in this dynamic field.
Brian
Joy
Alex
Kikyo
Hui Xin