M2, a crypto exchange based in the UAE, recently fell victim to a security breach resulting in a loss of $13.7 million in digital assets. The incident took place on October 31 at 3:16 A.M., with the hackers targeting three addresses across the Bitcoin, Ethereum, and Solana networks.
Although details about the breach were limited, a blockchain security firm named Cyvers revealed that a suspicious address received $3.7 million in USDT, 97 million SHIB, and 1,378 ETH. These assets were quickly converted into ETH, leading to an estimated total loss of $13 million, with $10 million still remaining on the Ethereum network.
Despite this significant theft, M2 has assured its customers that all affected funds have been fully recovered. The exchange has also implemented enhanced security measures to prevent future breaches and ensure the safety of its users’ assets.
Cyvers, the blockchain security firm, highlighted the growing trend of security breaches in the crypto industry, with over $2 billion lost to hacks in the first three quarters of 2024 alone. This marks a 72% increase compared to the previous year, with centralized finance platforms experiencing a significant spike in security incidents.
To combat these threats, Cyvers recommended that crypto projects prioritize strong security measures such as advanced access controls, real-time monitoring powered by AI, regular audits, threat detection systems, and a well-defined incident response plan.
In response to the breach, M2 has taken full responsibility for the incident, working closely with legal and regulatory authorities to address the matter thoroughly. The exchange reassured its customers that operations are back to normal and that their funds are secure.
As the crypto industry continues to face cybersecurity challenges, it is essential for exchanges and projects to prioritize robust security protocols to safeguard user funds and maintain trust within the community. By staying vigilant and proactive in implementing security measures, exchanges can better protect against potential threats and ensure a safe trading environment for their users.
