Crypto Criminals Steal $411.7 Million in February

Crypto criminals managed to steal nearly half a billion dollars in February, highlighting ongoing security challenges in the digital asset industry.

Wallet Breaches

Web3 protocols and blockchain participants lost approximately $411.7 million throughout the month, according to on-chain analytics provider Quantstamp. The losses were attributed to smart contract hacks, rug pulls, scams, and wallet key compromises.

Crypto hackers primarily targeted digital wallet security, making off with $333.2 million in just 29 days. Notable incidents included an attack on Axie Infinity co-founder Jeff Zirlin, where hackers stole 3,248 Ether (ETH) valued at $9.5 million at the time.

Rug Pulls and Scams

Rug pulls and scams accounted for around $69.5 million in stolen crypto during February. These schemes typically involve deceiving users with false promises and roadmaps, only to disappear with deposited funds, leaving investors with worthless tokens.

Smart Contract Hacks

Smart contract hacks resulted in losses of nearly $8.9 million. These attacks exploit vulnerabilities and bugs in smart contract codes deployed by decentralized protocols, ranging from flash loan hacks to reentrancy bugs.

Despite the significant losses in February, experts remain optimistic about improved security measures in the industry. Developers and startups are increasingly investing in security solutions and best practices to mitigate risks.

Chainalysis reported a 29% reduction in crypto money laundering, indicating that sanctions on mixing services have hindered the activities of crypto criminals.

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