Cryptocurrency Hackers Strike Again, Stealing Over $13 Million in a New Cyberattack on a Crypto Exchange

Centralized cryptocurrency exchange (CEX) M2 was hacked for $13.7 million worth of digital assets, the exchange shared in an Oct. 31 announcement

Centralized cryptocurrency exchange (CEX) M2 has lost $13.7 million to hackers, who managed to pilfer the funds from the exchange’s hot wallets.

The incident occurred on Oct. 31 and saw the attackers make away with Bitcoin ( BTC ) worth $70,428, Ether ( ETH ) valued at $2,540.39, and Solana ( SOL ) amounting to $169.60, according to pseudonymous onchain investigator ZachXBT in a Telegram post on Nov. 1.

M2 announced the security incident in an announcement on the same day, which stated, “We have detected some suspicious activities on M2. Currently, the relevant assets have been frozen.”

The incident comes nearly four months after a hacker stole over $230 million from WazirX, an Indian cryptocurrency exchange, in the second-largest cryptocurrency hack of 2024 so far.

Fourteen hours after the incident, M2 thanked ZachXBT for assisting the exchange in tracking the stolen assets on-chain. “We are still investigating the incident and will keep you updated,” the exchange added.

Cryptocurrency hacks soared to $19 billion over 13 years

In other cryptocurrency news, a Crystal Intelligence report shared with Cointelegraph on Nov. 1 revealed that cryptocurrency hacks and scams have amounted to nearly $19 billion in losses over 13 years.

The report, which covered 785 reported hacking incidents up to June 12, 2024, also highlighted some key trends in the space.

The largest single crypto theft case remains the 2019 Plus Token fraud when attackers netted $2.9 billion worth of Bitcoin and Ether.

During the past two years, the $290 million security breach on PlayDapp represented the largest single crypto heist in February 2024.

During the same period, the JPEX investment scam in Hong Kong made for the largest single crypto fraud scheme, resulting in $194.3 million of stolen crypto.

The report further noted that centralized exchanges remained the largest target for hackers in terms of total value stolen, while the 10 largest decentralized finance (DeFi) hacks in 2023 and 2024 accounted for almost $579 million in stolen assets.

Chinese trader laundered over $17 million for Lazarus Group in 25 hacks

Meanwhile, a Chinese cryptocurrency trader has been charged for allegedly laundering more than $17 million in stolen cryptocurrencies for the North Korean state-sponsored hacking group Lazarus Group, the United States Department of Justice announced on Oct. 31.

According to the statement, 32-year-old resident of Shenzhen, China, Jianchao Tang, was charged in a criminal complaint for allegedly laundering cryptocurrency stolen in at least 25 separate hacks.

The complaint alleges that Tang operated cryptocurrency trading accounts on several exchanges and used them to launder the stolen crypto. He is also accused of using mixers and chain-hopping techniques to conceal the trail of the stolen funds.

The charges against Tang stem from a broader investigation into Lazarus Group, which has been linked to several high-profile cryptocurrency hacks in recent years, including the 2022 Harmony Horizon bridge exploit and the 2023 Curve Finance hack.