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28/06/24
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Immunefi Report Shows Over 100% Increase in Losses to Crypto Hacks and Scams in Q2 2024
Blockchain security platform Immunefi’s research shows an over hundred percent increase in the cryptocurrency value lost to scams and hacks in Q2 2024, relative to Q2 2023. Crypto valued as more than $572 million was lost in the second quarter of this year, relative to $220 million in the second quarter of last year.
Majority of the losses were recorded in centralized exchange (CEX) hacks. There was a decline in losses from scams and hacks before Q2, specifically a 23 percent decline. They continued to decline through April 2024 and May before a dramatic increase towards the end of last month and June.
A private key hack of DMM was the largest single loss in Q2, involving the loss of BTC valued at $305 million on May 31. Six days ago, BtcTurk hack led to the loss of $55 million, so these two incidents accounted for over 62 percent of aggregate losses for Q2, according to the report.
Losses worth $401M were recorded by CEXs and centralized protocols, representing 70 percent of the aggregate losses. Bad actors succeeded against centralized protocols in five incidents while decentralized protocols suffered sixty-two successful incidents, including scams and exploits.
DeFi protocols recorded losses valued at $171M in Q2, representing a 25 percent decline relative to the same quarter last year. The two most targeted networks still include Ethereum and BNB Smart Chain, recording 71 percent of the aggregate losses from scams and hacks.
This was followed by Arbitrum which recorded four incidents with losses representing 5.5 percent of the aggregate. Blast and Optimism suffered three incidents each, representing 8.5 percent of the aggregate. Other networks recorded one incident each, collectively representing 15 percent of the aggregate.
“This quarter highlights how infrastructure compromises can be the most devastating hacks in crypto, as a single compromise can lead to millions in damages. This was evident during this quarter, where losses surged primarily due to hacks targeting CeFi infrastructure, surpassing DeFi, despite a smaller number of hacks in that sector. Robust measures to safeguard the entirety of the ecosystem are crucial,” said Immunefi founder Mitchell Amador.
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