According to a recent report by Immunefi, a blockchain security firm, the cryptocurrencycurrency industry’s losses from hacking and scams decreased in the first quarter of 2024. Compared to 2023, overall losses were around $336.3 million, a 23% decrease from the previous year’s $437.5 million.
The report detailed 46 hacking incidences and 15 cases of fraudulent activity throughout this time period. Notably, all of Immunefi’s Q1 attacks targeted decentralized finance (DeFi) networks, whereas there were no instances on centralized finance systems.
DeFi platforms, which have roughly $100 billion in total value locked in Web3 protocols, remain great targets for hackers due to their vulnerability to private key compromises. One notable attack, costing $81.7 million, targeted the cross-chain bridge protocol Orbit Bridge on New Year’s Eve, accounting for the majority of the damages.
January had the largest monthly losses in Q1, totaling $133 million. Mitchell Amador, Immunefi’s CEO, underlined the critical need for stronger security measures across code and protocol architecture in DeFi platforms to reduce the dangers associated with private key compromises.
The second most major hack targeted the Blast-based NFT game Munchables, yielding a $63 million exploit. Fortunately, the monies were recovered within 24 hours after the hacker gave up possession of the private keys to the wallet containing Munchables assets.
Crypto Sector Hacking Losses Decreased by 23% in Q1 2024
Jasinth is a creative and skilled crypto content writer with over three years of experience in the field. With a passion for writing and research, she has made a name for herself in the crypto community and financial market with her in-depth analysis and clear explanations of complex topics. She is also a literature enthusiast who loves beautiful clicks.