Web3 Loses $200 Million to Hacks in Two Months of 2024
In the first two months of 2024, the Web3 space experienced losses of over $200 million due to hacks and rug pulls, according to a report by Immunefi, a blockchain cybersecurity platform. This represents a 15.4% increase compared to the same period in 2023. The report highlights that private key and wallet compromises were responsible for nearly 30% of the total losses so far this year. Immunefi expects that 2024 will see even larger losses in Web3, surpassing any previous years.
February Witnesses Decrease in Web3 Hack Costs
In February 2024, Web3 users lost $67 million across 12 specific incidents. While this is still a significant amount, it is almost half of what was lost in January. According to Jonah Michaels, Comms Lead at Immunefi, there was also a decrease in the number of single incidents compared to January. However, February still saw notable exploits resulting in losses of up to $32 million due to hacking.
Hacks Continue to Be Primary Cause of Losses
In February, hacks accounted for 97.54% of the total losses, while fraud only accounted for 2.46%. As activity and capital inflows increase in the Web3 ecosystem, hacking remains a major challenge for the industry. Bad actors are constantly looking for vulnerabilities and opportunities to exploit protocols and infrastructure.
- The crypto gaming platform PlayDapp lost $32.35 million.
- The decentralized crypto exchange FixedFloat lost $26.1 million.
DeFi Remains a Major Target
Decentralized finance (DeFi) continues to be the main target for exploits in terms of funds lost. In February, DeFi suffered a total loss of $67 million across 12 incidents. The attacks on PlayDapp, FixedFloat, and Duelbits were particularly high-profile. On the other hand, centralized finance (CeFi) did not experience any major exploits during this period.
The most targeted chains in February were Ethereum, BNB Chain, and Bitcoin. Ethereum had the highest number of individual attacks, accounting for 85.71% of the total losses across targeted chains.
Immunefi Offers Bounty Rewards for Vulnerability Reporting
Immunefi provides over $157 million in available bounty rewards for vulnerability reporting. They have already paid out over $90 million in bounties and claim to have saved over $25 billion in user funds.
Hot Take: Increased Vigilance Needed to Combat Hacks in Web3
Hacks and rug pulls continue to pose a significant threat to the Web3 space. As the industry grows and attracts more capital, bad actors are becoming more sophisticated in their methods. It is crucial for individuals and projects in the Web3 ecosystem to remain vigilant and prioritize security measures to protect user funds.
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