The centralized cryptocurrency exchange (CEX) M2 fell victim to a cyberattack on October 31, losing $13.7 million in digital assets, including Bitcoin, Ether, and Solana. This breach comes amid growing concerns over the security of crypto exchanges, especially following the massive $230 million hack of India’s WazirX exchange just four months ago. M2 swiftly responded, restoring all affected customer funds and strengthening its security controls to prevent future incidents.
M2 security incident. Source: M2
Immediate Action: Funds Restored to Users
In a public statement, M2 confirmed that the stolen assets have been recovered or compensated, saying, “The situation has been fully resolved, and customer funds have been restored.” The exchange took full responsibility, reassuring users of its commitment to security. M2 resumed full services after implementing additional controls to bolster its defenses against potential threats.
WazirX Breach: A Lingering Shadow
The attack on M2 is the latest in a series of high-profile hacks that have rattled the cryptocurrency market. In June, WazirX lost $230 million in one of 2024’s largest breaches, highlighting the risks for centralized exchanges. Despite advancements in security, such incidents underscore the vulnerability of centralized platforms, which remain lucrative targets for cybercriminals.
Crypto amounts stolen via hacks and scams in 2023/2024. Source: Crystal intelligence
A Crystal Intelligence report released in mid-2024 revealed that the crypto industry has lost nearly $19 billion across 785 hacking incidents since 2010. The largest theft remains the 2019 Plus Token scam, where attackers stole a staggering $2.9 billion. This year, the PlayDapp hack of $290 million and the $194.3 million JPEX scam continue to mark 2024 as a particularly severe year for crypto security breaches.
Hurdles to Mass Adoption
With cryptocurrency thefts accelerating, 2024’s first quarter alone saw $542.7 million in stolen funds—a 42% rise compared to 2023’s first quarter. Such incidents pose significant challenges to the mass adoption of digital assets, especially as centralized exchanges remain the primary targets for large-scale heists. If current trends continue, crypto thefts in 2024 could surpass last year’s totals, putting increased pressure on exchanges to enhance security.
As crypto hacks rise, M2’s prompt response demonstrates the importance of robust risk management in rebuilding trust. However, the scale and frequency of attacks underscore the need for industry-wide security advancements to pave the way for secure, mainstream cryptocurrency adoption.
