WazirX Hack Dominates Losses as Overall Scams Diminish

Losses from crypto hacks and scams fell to $413 million in the third quarter of 2024, a significant decrease of 40% compared to the same period last year. According to a report by blockchain security platform Immunefi, Q3 2023 had reported losses of $685 million. Moreover, losses decreased by approximately 28% when compared to the second quarter of this year.

Major Hacks Highlight Ongoing Risks

Despite the overall decline, the third quarter did see some significant incidents. The largest hack was against the WazirX crypto exchange, which resulted in a staggering loss of $235 million. The second most substantial breach was the $52 million hack of BingX. Together, these two incidents accounted for over 69% of the total losses for the quarter.

In stark contrast, losses from rug pulls and other types of fraud were minimal, with only $3 million lost across three incidents, making up just 0.8% of the total. This represents an impressive 86.4% decrease in scam losses compared to Q3 2023.

DeFi Exploits Show Marked Improvement

Exploits in decentralised finance (DeFi) also saw a dramatic decline, with losses totaling $103 million across 31 incidents—a staggering 79.2% drop from the $500 million lost in Q3 2023. Despite these positive trends, concerns remain over the potential for substantial losses at centralised exchanges (CEX).

Immunefi founder Mitchell Amadour emphasised that private key management continues to be a critical infrastructure issue in CEX environments. He stated that while decentralised finance experiences a higher number of incidents, centralised finance often incurs more severe losses in single exploits. Effective key management practices and emergency plans are essential for mitigating risks in this evolving landscape.

Overall, while the crypto industry is witnessing a decline in losses, the risk of large-scale hacks persists, highlighting the ongoing need for improved security measures.