Overview of Blockchain Security Incidents in January 2024

In January 2024, security incidents in the Blockchain field occurred frequently, with losses significantly increasing compared to December 2023. This month, more than 34 typical security incidents occurred, with total losses amounting to approximately $205 million, an increase of about 93% from the previous month. Among them, losses from attack incidents were approximately $161 million, losses from phishing scams were about $33.31 million, and losses from Rug Pull incidents were around $11 million.

Several major security incidents occurred this month:

• Ripple co-founder Chris Larsen's personal account was hacked for $112 million.
• South Korea's Web3 social music service SOMESING was attacked, resulting in a loss of $11.58 million.
• Multiple personal addresses lost over one million dollars due to phishing.

Hacking Attack

This month, there have been 13 typical attack incidents, resulting in losses of approximately $161.47 million. The main ones include:

1. Radiant Capital on the Arbitrum Blockchain was attacked due to a contract vulnerability, resulting in a loss of approximately 4.5 million USD.
2. Gamma Strategies suffered an attack due to contract vulnerabilities, resulting in a loss of $6.18 million
3. Payment platform CoinsPaid was attacked, resulting in a loss of approximately 7.5 million dollars.
4. The interoperability protocol Socket was attacked due to a contract vulnerability, resulting in a loss of approximately 3.3 million USD.
5. The GAMEE game project on the Polygon Blockchain was attacked, resulting in a loss of approximately 7 million dollars.
6. South Korea's SOMESING was attacked, losing 11.58 million dollars.
7. The MIM_Spell project on the Ethereum Blockchain was attacked due to a contract vulnerability, resulting in a loss of 6.5 million dollars.
8. Ripple co-founder Chris Larsen's personal account was hacked for $112 million.

Rug Pull/Phishing Scam

This month, there were 11 typical Rug Pull and phishing scam incidents, resulting in losses of approximately $25.11 million. The main ones include:

1. An address was hacked for about $1.3 million due to signing a malicious ERC20 Permit.
2. An address was hacked for about $2.47 million due to signing a malicious 'increaseAllowance' transaction.
3. A certain address suffered from a address poisoning attack, resulting in a loss of approximately 4.4 million dollars.
4. The MangoFarm project on the Solana blockchain experienced a rug pull, with the deployer making a profit of approximately 2 million dollars.
5. The XKING project on the Arbitrum Blockchain experienced a rug pull, with the deployer making approximately $1.24 million.
6. The Hector Network project on the Fantom blockchain experienced a rug pull, with the deployer making a profit of approximately $2.7 million.
7. Multiple personal addresses have fallen victim to phishing scams, with a single loss exceeding one million dollars.

Crypto Cases

This month, there have been 10 typical cases related to cryptocurrencies:

1. A digital collectibles fraud case in Shenzhen has been sentenced, with the involved personnel receiving 12 years of imprisonment.
2. The illegal foreign exchange trading case involving virtual currency in Shanghai has been prosecuted, with an amount involved of 220 million yuan.
3. The first case of digital renminbi "running points" in Shanghai disclosed
4. Zhengzhou concluded a case of "group" buying and selling virtual currency fraud, involving more than 1.3 million yuan.
5. A woman is on trial in London for allegedly laundering £5 billion through Bitcoin.
6. German police seized approximately $2.1 billion worth of Bitcoin
7. U.S. authorities seized $150 million worth of cryptocurrency accounts from darknet drug dealers.
8. The main culprit of the Silk Road case pleaded guilty, and 8100 BTC were confiscated.
9. The United States sues a German businessman for $150 million in cryptocurrency fraud.
10. An Indian national pleaded guilty to drug trafficking on the dark web in the U.S. and had $150 million in cryptocurrency seized.

Blockchain Policy

1. The Hong Kong Securities and Futures Commission has released a three-year policy focus, proposing to advance the regulation of virtual assets.
2. The State-owned Assets Supervision and Administration Commission issued a document to improve the pricing of transactions related to data assets of central enterprises.
3. Jiangsu Province issued the Management Measures for Data Intellectual Property Registration.
4. The Ministry of Industry and Information Technology and other departments issued guidelines for the construction of the Blockchain standard system.
5. Zhejiang explores the establishment of a data property rights trading system.
6. Shanghai proposes to accelerate the construction of urban Blockchain infrastructure.

Blockchain Industry Development

1. Wuhan Smart City "Super Brain" Blockchain Hub Goes Live
2. Xiamen Torch Metaverse Public Technology Service Platform Unveiled and Operated
3. Jiangsu Province Blockchain Evaluation Center Approved for Establishment
4. Wuxi, Jiangsu has established a special fund of 100 million to support Metaverse applications.
5. The Metaverse Industry Alliance was established in Putuo District, Shanghai.
6. Shandong Provincial Blockchain Research Institute approved as a provincial-level Data Open Innovation Application Laboratory

Blockchain Application Promotion

1. A certain platform issued the first Blockchain electronic data proof certificate.
2. The first blockchain-based network empowerment notarization platform launched
3. Jining issues the first data asset credit loan
4. Heze Public Resource Trading Center carries out Blockchain data on-chain.
5. Suzhou Metro achieves digital RMB payment without network or electricity across the entire line.
6. Hong Kong supports financial institutions to carry out cross-border pilot projects for digital RMB.
7. The first provincial-level Metaverse application scenario innovation engineering research center has been established.
8. Fujian achieves full-scenario payment of taxes and fees with digital RMB
9. A certain bank has launched a digital renminbi hard wallet that supports Hong Kong's Octopus card.

Digital Assets and Industry Regulation

1. U.S. Senators Introduce Bill to Combat Illegal Use of Crypto Assets
2. Canada Seeks Feedback on New Rules for Investing in Cryptocurrency Funds
3. A certain bank has launched the country's first "Cross-Strait Family" digital RMB hardware wallet.
4. The Shanghai headquarters of the central bank proposed measures to prevent the risks of speculation in virtual currency trading.
5. The European Banking Authority expands anti-money laundering measures to cryptocurrency companies.
6. South Korea will launch a virtual currency asset tax plan in January 2025.
7. South Korea is formulating comprehensive guidelines on the issuance volume of virtual assets.
8. Shanghai Taxation: Individuals engaged in online trading of virtual currency must pay personal income tax.
9. South Korea proposes to ban credit card payments for cryptocurrencies
10. The EU will investigate the connections between banks and crypto entities.
11. The US requires brokers to report cryptocurrency transactions exceeding $10,000.
12. The U.S. SEC sues over a $1.7 billion cryptocurrency Ponzi scheme.
13. Finland tracks Monero transactions related to hacking attacks
14. CFTC warns against crypto arbitrage scams using AI algorithms.

Other Industry Dynamics

1. The web3 communication platform Sending Network has released a white paper.
2. "Global Web3 Industry Panorama and Development Trend Research Report" Released
3. The central bank and the Hong Kong Monetary Authority launched six measures to deepen cross-border financial policies.
4. About ten fund companies are preparing to launch virtual asset ETFs in Hong Kong.
5. OKX Web3 wallet supports cross-chain transactions on the Solana network.
6. Hong Kong regulations require licensed virtual asset exchanges to provide 50% insurance for customer assets.