Web3 Lost $127M to Hackers in January 2024; Up 5.9x YoY
In January 2024, hackers and fraudsters managed to steal $126,782,617 across 19 incidents in the Web3 ecosystem, according to a report by cybersecurity platform Immunefi. This represents a significant increase compared to January 2023 when losses amounted to $21,021,800. Additionally, it is a 2.8x increase from December 2023 when losses reached $45,369,855.
The majority of losses in January were due to hacks rather than fraud or scams. Hacks accounted for 96.8% of total losses, while fraud accounted for 3.2%. Specifically, $122,709,800 was lost to hacks across 14 incidents, while $4,072,817 was lost to fraud across five incidents.
DeFi projects were the primary targets for hackers, with Ethereum and BNB Chain being the most targeted blockchains. These two chains represented over 58% of the total losses. Other targeted chains included Arbitrum with three incidents and Solana with two incidents.
Messari Expands Market Intelligence Services to Europe
Messari, a market intelligence company in the crypto industry, is expanding its services into Europe with the establishment of a new entity in Dublin. This expansion aims to provide tools and support for businesses, compliance teams, builders, and investors in Europe to engage with the digital assets economy more easily.
Messari’s CEO Ryan Selkis stated that this expansion is influenced by Europe’s significant impact on shaping the industry and the region’s sophisticated regulatory framework. The company aims to be a driving force behind the adoption of digital assets among international businesses and individuals as it expands into Europe.
Portal Raises $34 Million from Major Exchanges for Development of Decentralized Bitcoin-Based Exchange
Portal, a fintech provider, has raised $34 million in seed funding and announced its exit from stealth mode. Investors in the funding round include Coinbase Ventures, Arrington Capital, OKX Ventures, and other prominent fintech and crypto investors.
The funding will be used to develop two flagship products: Portal DEX (decentralized exchange) and Portal Wallet. Portal DEX aims to be the first Bitcoin-based exchange that enables Layer 2 atomic swaps of cryptocurrencies across blockchains with increased speed, lower cost, and improved security. Portal Wallet is a non-custodial tool that integrates with Portal DEX for seamless crypto transactions across different blockchains.
In addition to these products, Portal plans to launch new applications and strategic partnerships to enhance the utility and accessibility of Bitcoin in the coming months.
Hot Take: Web3 Faces Increasing Security Challenges
Web3, the decentralized web built on blockchain technology, experienced a significant increase in losses due to hacking incidents in January 2024. Hackers managed to steal $127 million across various projects and platforms, marking a 5.9x year-over-year increase.
This rise in cyberattacks highlights the urgent need for stronger security measures within the Web3 ecosystem. DeFi projects, such as those built on Ethereum and BNB Chain, were the primary targets for hackers. As Web3 continues to evolve and gain traction, it is crucial for developers, users, and businesses to prioritize cybersecurity practices to safeguard against potential threats.
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