Overview of Security Incidents and Policy Developments in the Blockchain Industry in January 2024

In January 2024, the losses caused by security incidents in the blockchain industry significantly increased compared to the previous month. This month, there were more than 34 typical security incidents, with total losses of approximately $205 million, an increase of 93% compared to December 2023. Among them, losses from hacker attacks were about $161 million, phishing scams resulted in losses of approximately $33.31 million, and Rug Pull losses amounted to about $11 million.

Notable significant events include: Ripple co-founder Chris Larsen's personal account was hacked for $112 million, and the South Korean Web3 social music service SOMESING suffered an attack resulting in a loss of $11.58 million. In addition, several incidents occurred this month where personal addresses lost over a million dollars due to phishing.

In terms of regulation, several countries and regions have introduced new policy measures:

• The Hong Kong Securities and Futures Commission has released a three-year policy focus that will promote the development of a regulatory framework for virtual asset trading platforms.
• A U.S. Senator has introduced a bill aimed at combating the illegal use of crypto assets through corporate cooperation.
• Canada is seeking feedback on new rules for funds investing in cryptocurrency.
• South Korea will launch a virtual currency asset tax plan in January 2025.
• The European Banking Authority expands anti-money laundering measures to cryptocurrency companies.

In terms of industrial development:

• The "Super Brain" Blockchain Hub for Wuhan Smart City is now online.
• Jiangsu Province Blockchain Assessment Center approved for establishment.
• Wuxi, Jiangsu has established a special fund of 100 million to support the landing of metaverse application scenarios.

In terms of application promotion:

• The first blockchain electronic data certificate was issued online by the State Grid.
• Suzhou Metro has achieved offline digital RMB payment across the entire line.
• Fujian achieves full-scene tax payment using digital RMB.

There are also new developments in the Web3 field:

• The Web3 communication platform Sending Network has released a white paper.
• The "Global Web3 Industry Panorama and Development Trend Research Report" has been officially released.
• About ten fund companies are preparing to launch virtual asset spot ETFs in Hong Kong.

Overall, although security incidents are still frequent, regulatory measures in various countries are gradually improving, and the application of Blockchain technology is continuously expanding. The future development of the industry faces both challenges and opportunities.