With growing innovation in the blockchain realm, the number of crypto projects is seemingly increasing, and unsurprisingly, so is the number of hacks. Reports show that the year 2024 experienced $2.2 billion in crypto fund losses after hackers played their tricks.
Recent hacks that shook the crypto world
The hacking of one of the leading crypto exchanges, Coinbase, made headlines across the crypto media world. Hackers exploited a vulnerability on the platform, compromising the accounts of nearly 6,000 customers.
Another recent hack includes that of ByBit, which literally affected the crypto investors, as it lost $1.4 billion in funds. Around $644 million of the stolen funds are now untraceable!
WazirX, one of India’s largest crypto exchanges, faced a similar experience after hackers stole over $234.9 million in funds. Phemex exchange lost nearly $85 million in crypto after bad actors exploited a vulnerability in the platform’s hot wallet system, while Singapore-based crypto exchange BingX suffered a $52 million fund loss.
Protect your project: key security steps for crypto developers
- Lock it, but with multi-layered security
Imagine how long a single wall or pillar can support a long tower! It is impossible! Just like why buildings and skyscrapers need multiple pillars, blockchain projects also require multiple layers to secure investor funds and the entire blockchain network. If hackers exploit one layer, other layers can stop a full-scale breach. - Eyes on the chain: real-time monitoring is essential
Keep an eye on your blockchain protocol. Watch for any anomalies that intrude into your network. Cybersecurity professionals are usually responsible for handling these tasks. If you blink, you are breached! - Security auditing, an unavoidable lesson
For several project developers, an audit is just once, and then done. But, wait, that’s not how it must be carried out. Never fail to audit regularly: identify vulnerabilities like bugs, holes, and logic errors before attackers find them. Auditing is also the key to complying with security standards and best practices.
Why not have mock attacks to know what to do before attackers play on your network? - Stay updated, stay defended
If you know about the latest cyber attacks and solutions to tackle them, you are in a safe zone, of course, your project as well. - Give awareness to be extra aware
Make sure that your employees are well aware of potential hacks, and teach them to avoid security mistakes. Simple human errors also cause cyber threats and hacks. - Hack happened: now what?
If ever your project network gets hacked, and you do not have a plan, you are in a vexing situation! Always have a plan to execute during the aftermath of a hack or threat. Typically, the plan includes procedures for identifying breaches, saving evidence, communicating with investors and stakeholders, and fixing the network vulnerabilities. In short, this process is called crisis communication.
Bad actors are all around, watching for vulnerabilities in crypto projects. If you do not have an appropriate idea on working against hacks, your projects will perhaps soon nosedive. Now that you have a glimpse of the significant steps to prevent hacking, it’s time to execute them one by one. The more prepared you are to defend against hacks, the safer your projects will be.
