Web3 bug bounty platform Immunefi reported that the cryptocurrency industry lost an estimated $509 million to hacks and fraud in the second quarter of 2024. This marks a staggering 91% increase compared to the same period last year. May 2024 alone saw the highest monthly losses recorded, totaling $107 million. In June, however, losses dropped to $78 million across 12 incidents, a 27% decrease from the $107 million lost in June 2023.
Centralized crypto institutions were the primary targets, accounting for two-thirds of successful attacks. The report also highlighted that Ethereum was the most exploited blockchain during the quarter, followed by the BNB chain and Arbitrum, representing 44.4%, 25%, and 5.6% of the total losses, respectively.
Jonah Michaels, Communications Lead at Immunefi, explained that Ethereum’s prominence as the main hub for DeFi activity and the vast amount of funds within its ecosystem make it a prime target for hackers. Hackers exploit numerous protocols on Ethereum for significant gains, and its connection to major privacy-focused chains and technologies facilitates the quick laundering of stolen funds.
The most significant loss this quarter was suffered by Japanese centralized exchange DMM Bitcoin, which fell victim to hackers and lost $305 million. In response, DMM Bitcoin has instituted measures to reimburse affected customers. Other notable targets included BtcTurk, Hedgey, Lykke, Gala Games, and SonneFinance, which collectively faced losses totaling $164.2 million.
This surge in crypto hacks and fraud underscores the growing need for enhanced security measures within the industry. As the cryptocurrency market continues to expand, the potential for significant financial losses due to cyber-attacks remains a critical concern. The report from Immunefi serves as a stark reminder of the vulnerabilities in the crypto space and the importance of robust security protocols to protect digital assets.
0 Comments