In the first quarter of 2024, the cryptocurrency industry witnessed a notable decline in losses attributed to hacking, according to a report by Immunefi. The report indicates a 23.1% reduction in losses compared to the same period last year.
The crypto industry lost a total of $336.3 million to hacking incidents in Q1 2024, marking a significant decrease from previous years. Immunefi‘s findings reveal that crypto projects experienced over $321 million in losses due to 46 hacking incidents and 15 cases of fraud during the quarter.
Defi Vulnerabilities
Decentralized finance (DeFi) platforms emerged as primary targets for hackers, accounting for the entirety of losses within the crypto industry. Mitchell Amador, CEO of Immunefi, highlighted the frequent compromise of private keys within the DeFi ecosystem, emphasizing the urgent need for enhanced security measures.
Key Insights
The report indicates a 17.5% decrease in hacker attacks compared to the same period in 2023. Ethereum (ETH) and BNB Chain (BNB) were the most targeted blockchains, with Ethereum witnessing 33 incidents and BNB Chain experiencing 14 attacks. These two blockchains collectively accounted for over 73% of the total losses.
Major Hacks
Prominent among the hacking incidents were attacks on the Orbit Bridge and the Munchables web3 gaming platform, resulting in losses of over $81 million and almost $63 million, respectively. Other notable targets included PlayDapp and FixedFloat, which lost $32 million and $26 million, respectively.
Fraud Cases and Recovery Efforts
Source: Immunefi
Hacking remained the predominant method of crypto theft, comprising 95.6% of total losses, while fraud accounted for only 4.4%. However, fraud cases saw a 22.4% decrease over the past year. Despite the decrease in overall losses, only 22% of stolen funds were recovered, amounting to $73 million.
CEFI Sector Resilience
In a notable contrast, the centralized finance (CeFi) sector reported zero losses in the first quarter of 2024, a stark difference from the $1.8 million lost during the same period last year.
The Immunefi report sheds light on the evolving landscape of crypto security, highlighting both progress and persistent challenges in safeguarding digital assets against hacking and fraud. As the industry continues to mature, enhancing security measures remains paramount to mitigating risks and fostering investor confidence.
