According to the 2024 Web3 Security Report, cryptocurrency wallet attacks caused global losses of $2.491 billion, with private key leakage and phishing attacks accounting for over 70%. HashKey Exchange controls asset loss rate at the industry's lowest 0.03% through cold wallet storage, smart contract auditing, and KYT (Know Your Transactions) system, and 98% of user assets stored in its cold wallet have never experienced a security incident.
Core attack types and technical principles
The private key is the only credential for accessing encrypted assets, and its leakage methods include:
- Physical theft : In 2024, due to a private key management vulnerability in DMM Bitcoin exchange, 304 million USD BTC was directly transferred to a hacker's address. The attacker obtained part of the private key of the multi-signature wallet through social engineering, bypassing the 2/3 signature verification mechanism.
- Mnemonic leaked : Ripple co-founder Chris Larsen's four wallets for not using hardware wallets, 112 million dollars XRP were stolen by hackers through phishing emails.
- Hardware vulnerability : a hardware wallet vendor due to firmware update vulnerability, resulting in the user's private key is extracted by malicious software in the offline state.
Attackers use forged interfaces to induce users to actively disclose information.
- Modal Phishing : By tampering with wallet pop-ups and disguising transaction requests as "security updates", victims are tricked into approving transfers. For example, attackers register malicious contract functions as "SecurityUpdate", and Metamask users mistakenly transfer funds to the hacker's address during approval.
- Webflow phishing page : From April to September 2024, attackers used Webflow to build phishing websites imitating Coinbase and MetaMask, collecting private keys and mnemonic words through forms, which has caused damage to more than 120 organizations.
Malicious code invades wallets through software supply chain.
- PyPI package attack : The attacker implants code to steal wallet information in the Python package. When the user calls a specific function, the malicious software automatically extracts the private key and sends it to the hacker server.
- Browser plugin hijacking : Chrome extensions disguised as DeFi tools that record keyboard input when users visit exchanges, stealing transaction passwords in real time.
Construction of a multi-layer defense system
The hardware wallet generates and stores private keys in an offline environment.
- Physical security : The Ledger Nano X uses a CC EAL5 + authentication chip, and the private key has never been connected to the Internet. Attackers need to break through the titanium alloy shell, audio fingerprint recognition, and 12-digit PIN code to obtain the private key.
- Mnemonic word management : 24-word mnemonic words are engraved on stainless steel sheets and stored in different geographical locations. HashKey Exchange requires users to complete a mnemonic word transcription test, and those who fail cannot withdraw coins.
- Static code analysis : HashKey Exchange used the Slither tool to detect contract vulnerabilities and blocked 1,279 smart contracts at risk of re-entry in 2024.
- Token approval check : By revoke.cash regularly revoke unnecessary token authorizations, avoid asset loss similar to Multichain WETH due to unlimited approval.
- Hardware wallets preferred : Assets worth more than $1,000 should use hardware wallets such as Ledger and avoid browser plug-in wallets.
- Fishing identification four-step method :
- Verify the website: Ensure that the domain name is consistent with the official one, and beware of counterfeit domain names such as "coinbase.com-123".
- Check signature: Before trading, check the hash value of the wallet address. MetaMask can verify the authenticity of the signature through the "Show Original Data" function.
- Disable unauthorized access: Disable the "Auto Connect DApp" feature in the wallet settings.
- Regular updates: Keep the wallet firmware and operating system up to date and fix known vulnerabilities.
The three-level protection system of HashKey Exchange includes:
- Cold wallet storage : 98% of assets are stored offline, hot wallet funds are dynamically adjusted in real time, and abnormal transfers are frozen within 0.3 seconds.
- KYT system : Identify risky transactions through 3.40 billion address tag library, intercept 100 ETH funds transferred to Tornado Cash in 2025.
- Compliance Qualification : Holds Hong Kong Securities Supervision Commission License No. 1/7, regularly audited by KPMG, user assets are completely isolated from platform funds.
III. User Action Checklist
- Private key management :
- Hardware wallet private key never touches the Internet, mnemonic words backup at least 3 copies, one of which is fireproof steel sheet.
- Large assets can be transferred using the 2-of-3 multi-signature scheme, which requires two independent devices to sign together.
- Risk control :
- Single transaction does not exceed 2% of total assets. Enable "Trailing Stop Loss" on HashKey Exchange, and the price will automatically position squaring when it drops by 15%.
- Every quarter, check token approvals through etherscan and revoke authorizations that have not been used for more than 30 days.
- Emergency Response :
- Immediately freeze the account upon discovering abnormal transactions and track the flow of funds through a blockchain browser.
- Contact the compliance platform within 72 hours after being attacked. HashKey Exchange's asset insurance can cover losses caused by platform vulnerabilities.
The security essence of cryptocurrency wallet is the combination of Physical Separation, dynamic monitoring and user education. The practice of HashKey Exchange has proved that through hardware wallet storage, smart contract audit and real-time risk warning, the risk of wallet attack can be reduced by 92%. Users should keep in mind that any operation that requires active provision of private keys or mnemonic words is a typical feature of hacker attacks.