Understanding the Shift in Losses in Crypto Exploits in Q2 2024 📉
Centralized finance (CeFi) was the main target of successful exploits in the second quarter of 2024, accounting for 70% of the total losses in the crypto world. This marks a significant shift from previous reports where decentralized finance (DeFi) bore the brunt of the losses. According to the latest report by a major bug bounty and security services platform:
Key Findings in Q2 2024 🔍
- CeFi suffered $401,400,000 in total losses across 5 incidents.
- DeFi recorded $171,288,861 in total losses across 62 incidents.
The Impact of Infrastructure Compromises 💥
Founder and CEO at Immunefi, Mitchell Amador, emphasized how infrastructure compromises can lead to devastating hacks in the crypto industry. A single compromise can result in millions of dollars in damages, as seen in the second quarter of 2024. The surge in losses was primarily due to hacks targeting CeFi infrastructure, surpassing DeFi despite fewer incidents in that sector. Safeguarding the entire ecosystem with robust measures is crucial to prevent such attacks in the future.
Chain Losses and Targets 🎯
- Ethereum accounted for 46.6% of the total losses with 34 incidents.
- BNB Chain had 18 incidents, representing 24.7% of the losses.
$572.7 Million Gone: A 112% Increase 📊
In Q2 2024, the Web3 ecosystem experienced significant losses due to hacking attempts and alleged fraud, totaling $572,688,861. Hackers stole $564,238,811 across 53 incidents, while fraudsters took $8,450,050 across 19 specific incidents. The major losses came from:
- DMM Bitcoin, a Japanese exchange, lost $305,000,000.
- BtcTurk, a Turkish exchange, lost $55,000,000.
The total losses in Q2 2024 represent a 112% increase compared to the same period in 2023, highlighting the growing threat of cyber attacks in the crypto space.
Hacks vs. Fraud 💔
Hacks continue to be the primary cause of losses, accounting for 98.5% of the total losses in Q2 2024. In contrast, fraud represents a smaller portion at 1.5%. The ecosystem managed to recover $28,736,000 in four instances, providing some relief amidst the losses.
Nearly a Billion Lost YTD 😱
Throughout the year, the crypto ecosystem faced losses totaling $920,940,078 across 135 incidents. The biggest loss from hacks occurred in June, amounting to $138,139,000. Fraud-related losses peaked in March with $6,541,000 stolen funds. A comparison between Q2 2023 and Q2 2024 shows a significant increase in hack-related losses and a decline in fraud-related losses. DeFi losses dropped by 25%, while CeFi losses skyrocketed by 984% during this period.
Immunefi continues to offer substantial bounty rewards, with over $163 million available for bug hunters. The platform has already paid out more than $100 million in bounties and safeguarded over $25 billion in user funds.
Hot Take: Safeguarding the Future of Crypto 💡
The rise in cyber attacks targeting CeFi infrastructure underscores the importance of robust security measures to protect user funds and the overall crypto ecosystem. As the industry continues to evolve, staying vigilant against threats and vulnerabilities is essential to ensure a secure and thriving crypto environment.
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