Crypto Exchange M2 Hacked for $13.7 Million

Centralized cryptocurrency exchange M2 has become the latest victim of a cybersecurity incident. In a recent blog post, the platform revealed it was hacked for $13.7 million on October 31.

M2 Responds 

According to pseudonymous on-chain sleuth ZachXBT, the fund was stolen from the platform’s hot wallet across multiple chains, including Bitcoin, Ethereum, and Solana. However, a detailed analysis of how the exploit occurred has not been revealed.

Meanwhile, M2 responded swiftly to the latest incident. Following the exploit, the exchange said it would take full responsibility for any potential losses suffered.

“We would like to report that the situation has been fully resolved and customer funds have been restored.  M2 has taken full responsibility for any potential losses, demonstrating our unwavering commitment to safeguarding our customers’ interests. All services are now fully operational with additional controls in place,” M2 said.

M2 added that it has reached out to relevant legal and regulatory authorities to “ensure this matter is dealt with thoroughly and appropriately.”

Growing Cybersecurity Threat

M2 is the latest victim of a recent series of attacks. Reports revealed that losses suffered from crypto-hacks surged 42% from the first quarter of 2023 to $542.7 million in the first quarter of this year. Analysts predicted that with this rate, 2024 is on track to surpass 2023 in losses suffered by crypto thefts. 

In October alone, there were  20 hacks in the sector, resulting in losses totaling $102.42 million. Among the notable hacks for the month are decentralized finance (DeFi) protocol Radiant Capital, which lost $50 million worth of crypto assets; the US government wallet, which was hacked out of $20 million; Eigenlayer’s $5.7 million hack; and Tapioca Foundation, which lost $4.7 million.

According to reports, nearly $19 billion has been stolen from the crypto sector in its 13-year history. This scam spans 785 incidents. The largest single crypto theft remains the PlusToken Ponzi scheme, which drained $2.9 billion in BTC and ETH.