As the digital currency realm continues to evolve, so do the tactics of cybercriminals aiming to exploit vulnerabilities and breach security measures. Despite advancements in the regulation space, crypto scam operations have successfully wiped off nearly $105 million digital assets during February.

February Registers Massive Theft Via Crypto Scams

In February 2024, crypto hackers executed over 20 targeted attacks, according to a post on X by Peck Shield Alert. These incursions resulted in a staggering sum of approximately $104.73 million being siphoned from various sources. This highlights the urgent need for enhanced defense mechanisms and proactive strategies to safeguard digital assets.

However, despite the concerning surge in cybercrime, there are indications of progress in combating these illicit activities. Notably, efforts to mitigate crypto scam losses have yielded some success, with approximately 6.4% of the stolen crypto funds, totaling around $6.7 million, being successfully recovered.

In addition, it’s important to note that the amount of funds lost to crypto scam operations has decreased by 42% compared to January’s figure of $182.54 million. However, crypto hackers managed to transfer over 6,000 stolen Ethereum (ETH) tokens. Out of these, 1,500 tokens were dumped to crypto exchanges while 1,471.6 ETH coins were exchanged for Bitcoin (BTC).

Also Read: Tom Emmer Slams SEC’s Gary Gensler For Illegal Rulemaking Amid SAB 121 Controversy

BitForex’s $56 Million Scam Frenzy

On February 26, BitForex, a popular crypto exchange, shocked its users by suddenly halting all withdrawals, leaving them without explanation for this abrupt action. This decision came amidst alarming reports of a significant $56 million crypto outflow detected from BitForex’s hot wallets.

Moreover, adding to the growing concerns, BitForex remained notably silent and didn’t provide any official statement or communication regarding the matter. Furthermore, users tried to access their accounts or the exchange’s website and reported encountering various issues, worsening the sense of uncertainty and frustration among investors.

In response to these developments, ZachXBT, an on-chain investigator, has conducted a comprehensive analysis, uncovering relevant findings regarding the outflows from BitForex’s hot wallets. Thereafter, speculations indicated that the crypto exchange was compromised due to a crypto hack.

BitForex’s current situation isn’t unfamiliar, as the exchange has previously faced allegations from Japan’s Financial Services Agency (FSA), particularly concerning violations of the country’s fund settlement laws. This history of regulatory scrutiny adds complexity to the present circumstances, raising concerns about the exchange’s compliance practices and potential consequences.

Also Read: House Committee Moves to Overturn SEC Crypto Custody Rule

The post Scam Alert: Crypto Hackers Drain $105 Mln With Over 20 Attacks In February appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am