Leading cryptocurrency investment firm BlockTower Capital has been hit by a recent attack that saw fraudsters partially deplete its main hedge fund, according to sources familiar with the matter. This incident underscores the increasing vulnerability of the crypto space to cyber attacks.
Hack shock to cryptocurrency investment company
Details about the hack are still limited, as BlockTower has not yet released an official statement. Sources close to the company, speaking anonymously to Bloomberg, revealed that attackers managed to exploit the vulnerabilities and capture a portion of BlockTower’s total Assets Under Management (AUM), which currently stands at over $1.7 billion, according to PitchBook data.
Following the attack, BlockTower took swift action. Blockchain forensic analysts were assigned to investigate the nature of the breach and track down the stolen funds. The company also informed its important partners about the incident. This isn’t the first time BlockTower has encountered difficulties. cryptokoin.com As we reported, in 2023, the company had to close its “market-independent” crypto fund worth more than 100 million dollars due to the decrease in investment opportunities in the strategy in question.
Hacking incidents are increasing again
The BlockTower hack adds to the growing trend of cyber attacks in the cryptocurrency industry. Notorious North Korean hacking group Lazarus Group has been linked to numerous incidents, often using crypto mixing services such as Tornado Cash to launder stolen funds.
Just last week, a fraudster obtained over $71 million worth of WBTC tokens. However, the stolen funds were later returned. In another recent coup, the leading Bahraini cryptocurrency exchange “Rain” fell victim to a significant hack on April 29, 2024. The hack resulted in losses of $14.8 million in Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Ripple. This breach was detected by blockchain security expert ZachXBT, who flagged suspicious activity on Rain’s platform, ultimately leading to the discovery of the attack.
Solid cyber security measures should be taken
As cryptoassets continue to gain mainstream adoption, robust cybersecurity measures will be paramount in protecting investor funds. The industry needs to prioritize collaboration between exchanges, security firms, and regulatory bodies to develop and implement effective countermeasures against cyber threats. On the other hand, investors should exercise due care when choosing the platforms where they will store their cryptocurrency assets and be careful against possible fraud and phishing attempts.
With crypto attacks increasing in frequency and sophistication, the responsibility falls on both industry leaders and individual investors to prioritize security and work together to build a more robust and resilient crypto asset ecosystem.
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