Phishing Scams Dominate Crypto Security Threats in 2024, Says CertiK

Phishing attacks have emerged as the most significant security challenge for the crypto industry in 2024, according to a report by blockchain security firm CertiK. These scams involve hackers sharing fraudulent links to steal sensitive information such as crypto wallet private keys.

CertiK’s annual Web3 security report, published on 2 January, revealed that phishing attacks accounted for over $1 billion worth of stolen digital assets across 296 incidents last year. “Phishing was the most costly attack vector last year,” a CertiK spokesperson told Cointelegraph. “Our figures are conservative; the actual figure is higher when you consider unreported incidents and other types of phishing scams like pig butchering.”

The report highlighted that at least three of the 296 incidents resulted in losses exceeding $100 million. Beyond phishing scams, private key compromises were the second-largest threat, resulting in over $855 million worth of stolen crypto across 65 incidents in 2024.

BlackRock’s Bitcoin ETF Sees Record Outflows

BlackRock’s iShares Bitcoin Trust (IBIT) recorded its largest one-day outflow since its launch in January 2024. On 2 January, the spot Bitcoin exchange-traded fund (ETF) saw a record outflow of $332.6 million, according to data from Farside Investors. This surpasses the previous record of $188.7 million on 24 December.

The outflow marks the third consecutive trading day of withdrawals from the ETF, with a total of $392.6 million pulled out over the past week. The move follows the market closure on New Year’s Day and has raised questions about investor confidence in the product.

BlackRock launched the IBIT ETF to provide institutional investors with exposure to Bitcoin, which is currently priced at $97,924. However, the recent outflows highlight shifting market dynamics as investors reassess their positions.

Do Kwon Pleads Not Guilty in US Court

Terraform Labs co-founder Do Kwon has pleaded not guilty to nine charges, including securities fraud, wire fraud, money laundering, and commodities fraud. Kwon appeared before US Magistrate Judge Robert Lehrburger in New York on 2 January, less than a week after being extradited from Montenegro.

Kwon’s plea follows his apprehension in Montenegro in 2023, where he was arrested for using falsified travel documents. Although sentenced to four months in prison, Kwon remained in custody as courts debated his extradition. On 27 December, Montenegrin Justice Minister Bojan Božović approved Kwon’s extradition to the United States, citing the gravity of his alleged crimes and other factors.

The charges stem from Kwon’s role in the collapse of the Terra ecosystem, which wiped out billions of dollars in value and caused significant harm to investors. A status conference is scheduled for 8 January, allowing the defence and prosecution to exchange evidence.

Key Takeaways

• Phishing scams cost the crypto industry over $1 billion in 2024, according to CertiK.
• BlackRock’s iShares Bitcoin Trust (IBIT) ETF faces record outflows, totalling $392.6 million in a week.
• Terraform Labs’ Do Kwon pleads not guilty to multiple charges in a US court following extradition from Montenegro.

These developments underscore the evolving challenges and dynamics within the cryptocurrency industry as it grapples with security threats, regulatory pressures, and shifting investor sentiment.