International. Cryptocurrencies got off to a good start this year, with the prices of crypto assets, such as Bitcoin (BTC), reaching record levels. However, that caught the attention of cybercriminals.
Atlas VPN found that cybercriminals stole around $108.3 million from various blockchain projects in the first quarter of 2021, a 46% increase over the same period last year. Ethereum DApps, blockchain wallets and cryptocurrency exchanges were the target chosen by the criminals.
The numbers are based on data provided by Slowmist Hacked, which aggregates information about disclosed attacks targeting blockchain projects. The data also considers blockchain scams, which account for just over a fifth of all blockchain hacking events in the first quarter of 2021. Monetary losses were calculated based on the conversation rate of a particular cryptocurrency at the time of a hacking or scam event.
Ethereum (ETH) DApps, decentralized applications based on the Ethereum smart contract, were the most popular blockchain targets among cybercriminals in the first quarter of 2021. They were affected by a total of 11 breaches and 5 scam events, amounting to over $86 million. in losses.
Blockchain wallets, digital wallets that allow cryptocurrency owners to store and manage their cryptocurrencies, were also commonly attacked. 9 blockchain wallet breaches were recorded in the first three months of this year, as well as 1 scam event and 2 blackmail cases. In total, they cost victims approximately $19.3 million.
Finally, cryptocurrency exchanges, platforms that facilitate the exchange of cryptocurrencies for other assets, had 4 breaches and 1 scam event. Together, cybercriminals collected around $2.9 million from cryptocurrency exchanges in the first quarter of 2021.
Blockchain-linked hacks are on the rise again
In the report on blockchain-related attacks in 2020, we observed a decline in breaches for the first time in the last five years. However, a new year brings new challenges. After analyzing the data of scams and breaches linked to blockchain from 2021, we see an upward trend once again.
In the first quarter of 2021, 33 breaches were already recorded, including scams, which affected Ethrereum's DApps, blockchain wallets, and cryptocurrency exchanges. It means an increase of 154% compared to the first quarter of 2020, when 13 blockchain-related breaches were detected.
However, the number of blockchain-linked breaches in the first quarter of 2021 is still almost twice as low as in the record year of 2019. In the first quarter of 2019 alone, 62 blockchain breaches were detected.
If we contrast this year's figures with those of the first quarter of last year, breaches and scams affecting ETH DApps increased by 433%, from 3 in the first quarter of 2020 to 16 in the second quarter of 2021. Meanwhile, hacks affecting blockchain wallets increased by 140%. , from 5 in the first quarter of 2020 to 12 in the second quarter of 2021.
Finally, successful attacks targeting crypto exchanges increased by 67%, from 3 in the first quarter of 2020 to 5 in the first quarter of 2021. However, unlike last year, no breaches related to blockchains or TronDapps were recorded in the first three months of 2021.
The most active month for cybercriminals was March, when they launched 14 successful attacks, while the least active was January with 8 attacks. The remaining 11 infringements occurred in February.
Due to their nature, blockchain projects remain profitable targets for cybercriminals because fraudulent transactions cannot be reversed, as is often the case in the traditional financial system. With cryptocurrencies entering their golden age as the total cryptocurrency market cap broke through $1 trillion earlier this year, it's safe to say that we can expect more hacks to arrive later this year.
Source: Atlas VPN.
