Casper Network suffers security breach, shuts down operations

Casper Network tweeted that it suffered a security breach. After discovering the breach, Casper Network shut down its operations. Casper Network also mentioned that they had already contained the security breach.

Casper Network assured users it had identified the issue and was working on a solution. The network further mentioned working with the Casper Association, Casper Labs, validators, and the community to solve the breach.

The network paused all activity on its ecosystem to prevent any further malicious activity from affecting user accounts. Casper Network confirmed that only a few significant accounts were affected by the security breach.

While there is no evidence that the hack affected Casper Network’s native token, CSPR is still trading at $0.01892, down by 4.82% in the past 24 hours. Its 24-hour trading volume is also significantly down, recording an over 75% drop.

Casper Network to release details on the security breach

The crypto community applauded the network’s efforts to contain the breach. Casper Network is yet to release more information concerning the hack and how many users it affected. In the tweet, Casper Network promised to release more updates.

The Casper Network also updated its community on the official Telegram channel. The announcement revealed Casper Network would publicize the details of the security breach once the issue is patched. Casper also mentioned publishing any code changes on its public Github.

One X user pointed out that the hack did not have any on-chain metrics. The user asked the network to provide the community with a way to monitor individual CSPR transactions. 

Crypto hacks increase in 2024

Multiple crypto and blockchain security firms released reports since the beginning of the year, citing increased crypto-related hacks and other exploits. A TRM Labs report on crypto hacks revealed that hackers stole over $1.3 billion by June this year. The amount stolen by the same time in 2023 was $657 million, nearly half the number recorded in 2024.

On July 18, hackers breached the Indian crypto exchange WazirX’s Safe Multisig wallet on ETH. The exchange lost more than $230 million, with reports confirming that Tornado Cash funded every transaction caller.

The exchange launched a recovery plan post-hack to reduce the hack’s effects on users and improve the platform’s stability. WazirX tweeted that it would use a socialized loss strategy to distribute the hack’s impact equitably. The exchange mentioned that lost funds amounted to around 45% of all user funds.

Merkle Science’s 2024 HACKHUB report highlighted that DeFi platforms continued to be the main target for hackers. The report also revealed that hackers preferred easier ways to attack crypto projects than smart contracts. Smart contracts-related hacks notably reduced by 93.5% in 2024.

On June 24, Wu Blockchain tweeted about the increased phishing activities on the TON blockchain, as SlowMist reported. The Wu mentioned how hackers used bots, anonymous Telegram numbers, and phishing links to scam users. Most attacks used fake airdrops and other methods to access user TON wallets.