Hackers Are On A Roll: Here Are Some Of The Biggest Crypto Hack Stories So Far In February

Key Insights

• After stealing $40 million in January 2024, crypto hackers appear to have doubled their efforts and have stolen nearly that figure in February

• According to recent reports, a hacker now claims that they know how to break into Binance, Coinbase, Chainlink, Discord, and others to steal user information.
• The U.S. SEC has filed a lawsuit against a crypto teacher, for scamming fifteen students out of a total of $1.2 million… before getting hacked
• A company was also duped by scammers who created deepfake video images of company executives and tricked an employee into sending $25 million.

The hackers have been on a roll in 2024, and we are barely two months in.

Just recently Quantstamp, a blockchain security startup analyzed five major hacks in the crypto space and determined that hackers made away with about $40 million so far, in January alone.

February is barely a few days in, and the hackers have already made away with nearly that figure, using everything from deepfakes to outright scams.

Here are some of the biggest hacks and crypto thefts in February 2024:

 A Crypto Hacker Claims To Have Backdoor Access To Binance, Coinbase And Discord

According to recent reports, a hacker now claims that they know how to break into Binance, Coinbase, Chainlink, Discord, and others to steal user information.

This hacker allegedly claims to be able to send what we call emergency data requests (or EDRs) to these sites using a law enforcement request service named KodexGlobal.

KodexGlobal as it turns out, essentially helps law enforcement authorities worldwide to request data from companies that manage user data, such as social media networks, exchanges, and other organizations.

As to the assessment by cybercrime solutions provider, Hudson Rock on February 4, the hacker most likely gained access to the KodexGlobal account credentials by breaking into several law enforcement agents' computers using Infostealer Infections.

The hacker is asking the public for a $5,000 payment for complete access to the KodexGlobal account, or $300 per EDR, and is offering access to the account on BreachForums.

Crypto Teacher Dupes Students Into Investing In Fake AI Hedge Fund

The U.S. SEC has filed a lawsuit against Brian Sewell, a crypto teacher, for scamming fifteen students out of a total of $1.2 million invested into a hedge fund that never existed.

In a recent press release from the U.S. SEC, from early 2018 until mid-2019, Sewell deceived several investors into investing in this fraudulent hedge fund, after claiming that he could use AI and machine learning to optimize investor returns.

However, he only collected this money and converted it to Bitcoin.

The scam then came to light after he got hacked, leading to the loss of all the stolen funds.

According to the SEC, "the complaint further alleges that the bitcoin was eventually stolen when Sewell's digital wallet was hacked and looted."

Thus far, Rockwell Capital Management has agreed to return the $1.2 million to his students out of his own pocket, along with an additional $402,000 in interest.

Moreover, if this penalty is approved by the court, Sewell might also have to pay an additional $223,229 civil penalty.

Hackers Create Deepfake Images, Get On A Video Call And Trick An Employee Into Sending Them $25 Million

In February, a multinational firm was also duped by scammers who created deepfake video images of company executives, got in a video meeting with an employee, and tricked them into sending more than $25 million of company funds over.

According to the statement reported by Radio Television Hong Kong (RTHK), these hackers used deepfake tech to make themselves look and sound exactly like company executives.

The scam started last month when the employee in question received a message from someone posing as the company's chief financial officer. The message invited the employee over to a video call, over which they would discuss a "secret transaction".

At the end of the day, they convinced the employee to send $25.5 million of the firm's funds across 15 transactions to them.

Acting Senior Superintendent Baron Chan of the Hong Kong Police Force's Cyber Security Division says that the scammers may have used previously collected footage of the company's executives to create the deepfake videos, before using them in the scam.

In All

These are just a few instances of how hackers are taking advantage of weaknesses in the crypto space and the digital world at large.

The security and privacy of people, companies, and institutions are seriously threatened by the skill of these cybercriminals every day, and users and other stakeholders must always be on alert to safeguard their assets and data against these kinds of attacks.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.