A hacker who accessed approximately $20 million in seized funds from the 2016 Bitfinex hack returned $19.3 million to the US government wallet within 24 hours. The breach, which occurred on October 24, initially saw a wallet under US government control drained of crypto assets. Security firm CertiK reports that Q3 2024 has been a challenging period for the crypto sector, with a 9.5% increase in losses totaling over $750 million due to cyber threats.
Funds Partially Recovered
According to blockchain analysis firm Arkham Intelligence, the hacker returned roughly 88% of the stolen assets to a government wallet starting with “0xc9E.” On-chain data shows the hacker returned around 2,412 ETH, 7,200 USDC, and $13.2 million in Aave-staked USDC (USD). However, approximately $700,000 was reportedly sent to instant exchanges, where it remains unrecovered. The hacker’s identity and motivations remain unknown, but experts believe the swift return may reflect increasing pressures on cybercriminals as blockchain forensics evolve.
October’s Wave of Crypto Hacks
October has seen a surge in crypto exploits, beginning with the October 16 attack on cross-chain lending protocol Radiant Capital. In this incident, hackers drained $50 million by compromising Radiant Capital’s multi-signature wallet on the BNB Chain and Arbitrum networks. Shortly after, $52 million was moved to the Ethereum network, further complicating recovery efforts.
Targeted Attacks on DeFi Protocols
The following day, Ambient Finance suffered a front-end attack, with a hacker briefly seizing control of the website domain. Although users were unaffected and the team swiftly restored control, the incident added to concerns about the security of decentralized finance (DeFi) protocols. On October 18, restacking service Eigenlayer also faced an attack when a threat actor hacked its social media account, spreading malicious airdrop links. The fraudulent links were removed within minutes, and the account resumed normal operations.
Growing Cybersecurity Challenges
These incidents reflect a growing trend of cyber threats against the crypto sector, particularly targeting DeFi platforms. With Q3 2024 seeing higher losses from hacks, firms, and protocols face mounting pressure to enhance security measures to protect investors and assets in an evolving threat landscape.
