March encryption security report: losses of $158 million, a year-on-year decline of 62.5%

In March 2024, the security situation in the encryption industry improved. There were more than 31 typical security incidents that month, resulting in total losses of approximately $158 million, a significant decrease of 62.5% compared to February. Specifically, losses from hacker attacks amounted to about $116 million, down 66.4% year-on-year; phishing scams resulted in losses of approximately $36.85 million, a rise of 129%; and Rug Pull incidents caused losses of about $5.12 million, down 91.4%.

Major attacks this month resulting in losses exceeding ten million dollars include: a certain Web3 gaming platform Munchables(6230 million USD), a certain RWA infrastructure(1600 million USD), and a certain DeFi protocol(1160 million USD). Notably, three attack incidents on a certain emerging public chain resulted in losses of 67.5 million USD, accounting for 58% of the total losses for the month. Meanwhile, the number of phishing scam incidents has surged, with multiple personal addresses losing over a million USD.

In terms of hacker attacks, there were 15 typical cases in March, resulting in a loss of approximately $116.35 million. This includes a DeFi project losing $8.75 million due to a contract vulnerability, a trading platform losing $2.6 million due to an external call vulnerability attack, a Web3 infrastructure wallet being stolen for $760,000, and a DeFi protocol losing $11.6 million due to a flash loan attack, among others.

In terms of Rug Pull and phishing scams, 9 typical cases occurred in March, resulting in losses of approximately $21.2 million. Multiple personal addresses suffered phishing attacks, with a single loss reaching up to $4.39 million. Additionally, two projects experienced Rug Pull incidents, causing losses of $1.4 million and $660,000 respectively.

In terms of encryption crime cases, there were a total of 7 typical cases this month. This includes a virtual currency pyramid scheme case cracked in Sichuan, with an amount involved exceeding 200 million yuan; the first "digital collectibles" fraud case cracked in Hubei, with an amount involved of over 12 million yuan; the recovery of stolen Bitcoin mining machines worth 6.9 million dollars in the United States; the arrest of suspects involved in a 400 million dollar encryption Ponzi scheme in Argentina; a UK court ruling that a woman participated in a 4.3 billion dollar Bitcoin money laundering; and the US SEC suing 17 people for a 300 million dollar Ponzi scheme, among others.

In terms of blockchain policy, regions such as Shanghai and Shandong have successively introduced policy measures to support the development of the blockchain industry. 18 departments have jointly formulated an action plan, focusing on the development of the metaverse, and conducting research on core technology standards such as blockchain.

In terms of the development of the blockchain industry, China has officially released its first international standard for liver and gallbladder based on blockchain; multiple regions have established metaverse experience centers and research bases; a certain country has launched the world's first national "metaverse" platform; the application of blockchain technology in government services has shown significant results.

In terms of digital assets and industry regulation, multiple countries and regions have introduced new regulatory policies. The European Union prohibits the use of unidentified self-custody encryption wallets for payments; the Hong Kong Monetary Authority issued guidelines for encryption custody services; Dubai enacted new digital asset laws; the UK plans to introduce regulations on abuse in the encryption market; Indonesia published new cryptocurrency regulations; South Korea will amend the Specific Financial Information Act; Nigeria requires foreign encryption exchanges to register locally, etc.

In addition, a well-known trading platform has been accused by the Nigerian government of laundering 35.4 million dollars; research shows that less than 30% of jurisdictions worldwide regulate encryption; a survey found that "pig butchering" scams have stolen over 75 billion dollars globally in the past four years.

Overall, the security situation in the encryption industry improved in March compared to February, but various security risks still exist. Regulatory policies continue to tighten, and industry compliance requirements are constantly increasing. The healthy development of the encryption industry in the future still requires joint efforts from all parties to strengthen security protection and improve the regulatory system.