- Cryptocurrency industry witnesses a 23% reduction in losses due to hacking and scams in Q1 2024 compared to last year.
- DeFi platforms were the primary targets, with two major incidents accounting for 43% of the total $336.3 million lost.
- Immunefi’s report suggests a decrease in attacks but emphasizes the need for stronger security on DeFi platforms.
A recent study by Immunefi, a blockchain security firm, reveals a significant reduction in the amount of money lost to hacks and scams in the cryptocurrency sector during the first three months of 2024. This year, the damages amounted to roughly $336.3 million, which is a 23% decrease from the $437.5 million reported in the same timeframe last year.
The bulk of these financial setbacks occurred within decentralized finance (DeFi) platforms, which continue to attract the attention of cybercriminals due to the substantial value they hold. No incidents were reported in centralized finance platforms during this period.
High-Profile Incidents Highlight Risks
Among the various breaches, two significant incidents were particularly devastating, contributing to almost half of the quarter’s total losses. The most notable was an $81.7 million theft from Orbit Bridge, a cross-chain bridge protocol, on the last day of the previous year. January emerged as the most challenging month, with losses peaking at $133 million.
Mitchell Amador, the CEO of Immunefi, underscored the vulnerability of DeFi platforms to attacks targeting private keys. He advocated for the adoption of more rigorous security protocols to safeguard these digital assets effectively.
Efforts to Recover Stolen Assets
In an encouraging turn of events, some of the stolen funds were swiftly recovered. Notably, the Munchables game experienced a $62 million heist, only for the stolen assets to be returned within a day after the hacker relinquished control of the relevant digital wallet.
Overall, the first quarter saw the successful retrieval of $73.9 million, which represents 22% of the total stolen. The frequency of attacks also saw a reduction, dropping from 74 in the previous year to 61 in this period.
The report further detailed that the majority of the financial losses were due to hacking incidents, which accounted for 95.6% of the total. Fraudulent activities made up the remainder. Ethereum emerged as the most frequently targeted blockchain, followed by the BNB Chain, together accounting for the majority of the losses. This data underscores the pressing need for fortified security measures within the DeFi ecosystem to thwart such attacks in the future.
