Data from the Web3 security services platform, Immunefi, shows an increase in crypto hacks and scams in Q2-2024.
Immunefi reports a total of 72 events involving hacks and scams that wiped off $572.7 million from the crypto market.
Surge in Crypto Hacks and Scams Reported for Q2-2024
Interestingly, the losses reflect a surge of 112% from Q2-2023, when hackers and fraudsters moved $265.5 million. It is also a 70.3% increase from the $336.3 million worth of attacks in Q1-2024. Furthermore, Immunefi estimates that hacks and frauds have wiped over $900 million this year. And that’s a 24% increase over the same period last year.
Who are the Targets?
DeFi protocols accounted for the bulk of the attacks in Q1-2024. However, Q2-2024 mostly targeted centralized exchanges. The report states that centralized exchanges lost around $401 million, or 70% of the total, in the quarter. Meanwhile, DeFi protocols lost $171 million, or 30% of the total, in Q2-2024.
Interestingly, Ethereum and the BNB Chain accounted for 71% of all losses. This makes them the top targets for bad actors. The May 31 private key attack on cryptocurrency exchange DMM was the highest loss in the quarter. The attack stole $305 million worth of bitcoin from the exchange.
A further $55 million was lost as a result of the June 22 BtcTurk breach. According to the report, the combined losses from these two major attacks were above 62% for the quarter. Newer data suggests that Ethereum layer 2s are becoming a familiar site for hackers. Arbitrum was the most targeted of these layer2s. It recorded around four occurrences and 5.5% of the overall losses. Optimism and Blast both had three occurrences.
At $358.5 million, May had the most monthly losses for the whole second quarter. Out of all the funds stolen in Q2, $28.7 million (or 5%) was retrieved. The retrieved funds involved attacks on YOLO Games, Gala Games, ALEX Labs, and Bloom.
More About Immunefi’s Report
Immunefi founder Mitchell Amador said that the losses in Q2-2024 were significant. Amador added that the numbers were also a reminder of the need for better security infrastructure for centralized exchanges.
He said: “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.”
Immunefi operates one of the biggest crypto security communities. It claims to have more than 45,000 researchers helping to prevent losses across the industry.
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