Crypto Thefts Plummet in June: A Victory in the Security Battle?

June brought a significant drop in cryptocurrency losses due to hacking, marking a 54.2% decrease from May. This shift indicates progress in the crypto security landscape.

Major Incidents and Impact

PeckShield, a crypto analytics firm, reported 20 hacking incidents in June, resulting in losses of around $176 million. The largest breach was the BtcTurk exchange, which lost over $100 million. Other notable incidents included Lykke ($22 million) and UwU Lend ($19.4 million).

Despite the June decline, the second quarter as a whole saw a surge in hacks and scams, with losses reaching $572.68 million. This represents a 70.3% increase from the first quarter and a 112% rise year-over-year.

Emerging Threats and Defense Strategies

The quarter also highlighted the growing threat of deepfakes, AI-generated impersonations that are becoming a challenge in scam operations. Exchanges are responding with advanced solutions like KYC verification from providers such as Sumsub.

Bitget, a leading exchange, has partnered with Sumsub to enhance its defenses and protect users worldwide. The partnership aims to develop new safety standards and protocols to address the deepfake dilemma, which has seen a significant increase in detections in the crypto sector.