Crypto Industry Sees 23% Drop in Hacking Losses: Report
In Q1 2024, the cryptocurrency sector witnessed a notable decrease of 23% in losses attributed to hacking and scams compared to the previous year, according to data from Immunefi.
The report indicates that losses from hacking and fraudulent activities totaled around $336.3 million during Q1 2024, a decrease from $437.5 million in the same period in 2023.
Immunefi’s study identified 46 hacking incidents and 15 cases of fraudulent activities. Notably, decentralized finance (DeFi) platforms, with nearly $100 billion in total value locked within Web3 protocols, remain prime targets for hackers. All the exploits identified in Q1 were directed at DeFi platforms, in contrast to zero incidents affecting centralized finance platforms.
Two significant attacks had a major impact on the industry, resulting in combined losses of $144.5 million, representing 43% of the total losses. The most significant attack, totaling $81.7 million, targeted the cross-chain bridge protocol Orbit Bridge on New Year’s Eve. January witnessed the highest monthly losses in Q1, amounting to $133 million.
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The CEO of Immunefi, emphasized the vulnerability of DeFi platforms to private key breaches, stressing the urgent need for strengthened security measures across code and protocol infrastructure.
Hacking incidents accounted for 95.6% ($321.6 million) of the losses across 46 cases, while fraud, scams, and rug pulls constituted 4.4% ($14.7 million) across 15 incidents. Ethereum emerged as the most targeted blockchain, followed by the BNB Chain, collectively accounting for 73% of the total losses.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
