As a seasoned researcher and cybersecurity enthusiast with over two decades of experience under my belt, I have seen the evolution of digital assets and their associated risks play out in real-time. The recent $13.7 million cyber attack on M2 crypto exchange is yet another stark reminder of the perils that come with managing digital assets, particularly when they are stored in hot wallets.
The UAE-based cryptocurrency exchange M2 suffered a cybersecurity attack on October 31, around 3:16 AM local time. The attack targeted their hot wallets on Bitcoin, Ethereum, and Solana blockchain networks, causing the loss of approximately $13.7 million in digital assets. The exchange’s security team reacted swiftly, but a considerable amount of assets were moved before the breach was stopped.
M2 Crypto Exchange Faces $13.7 Million Cyber Attack
Based on available information, it appears that a cyberattack on the M2 crypto exchange focused on three digital wallets containing Bitcoin, Ethereum, and Solana coins. A blockchain security company named Cyvers traced the stolen funds to one specific address, where they were then converted into Ethereum, amounting to approximately $13 million in total.
Additionally, the cybercriminal successfully withdrew around $3.7 million in USDT, 97 million SHIB coins, and 1,378 ETH. At present, an estimated $10 million worth of these assets still reside on the Ethereum network. Fortunately, M2 Crypto Exchange was able to stop any additional losses from occurring.
This incident underscores the growing dangers of storing digital assets in ‘hot’ wallets, which remain connected to the internet. Incidents like this reveal weaknesses in the security measures that cryptocurrency exchanges must remedy.
After the recent cyber incident, the M2 cryptocurrency exchange publicly declared their dedication to fully restoring all customer funds. They confirmed that any affected assets were promptly compensated and have strengthened their security measures for increased protection moving forward. Regular operations resumed as planned, with this UAE-based crypto exchange focusing on reinforcing security protocols to prevent future breaches.
Rising Crypto Hack Concerns
The M2 cryptocurrency exchange breach is an example of a growing issue where centralized exchanges (CEXs) are becoming more vulnerable to cyber attacks. As reported by Cyvers, crypto heists on CEX platforms have risen dramatically by around 1000% compared to the previous year, while losses at decentralized finance (DeFi) platforms decreased by 25%. Centralized blockchain projects, particularly those handling large amounts of funds, continue to be appealing targets for cybercriminals.
In October specifically, CoinGape highlighted an increase in crypto hacks, drawing attention to potential weaknesses within the industry as attacks intensified. Notably, significant incidents such as the $4.5 million heist on Tapioca DAO, a $50 million breach at Radiant Capital, and the data breach affecting 57,000 users at Transak served as stark reminders of the escalating dangers that both DeFi and CeFi platforms are encountering.
Due to an increase in cyber attacks on cryptocurrencies, security specialists are advising strong protective measures such as AI-based surveillance, regular evaluations, and contingency plans for dealing with incidents. Moreover, M2 exchange emphasized its commitment to adhering to compliance and safety regulations by collaborating closely with the UAE’s Financial Services Regulatory Authority (FSRA).
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2024-11-01 23:00