Crypto Hacks and Scams Surge in Q2 2024: Over $572M Lost, Reports Immunefi
Summary:
Blockchain security platform Immunefi's recent report reveals that Q2 2024 witnessed a considerable surge in crypto hacks and scams, with losses exceeding $572 million—more than double the figure recorded in Q2 2023. High-profile hacks of DMM and BtcTurk made up more than 60% of the reported losses. While the number of successful attacks on centralized protocols was noticeably fewer compared to decentralized ones, their losses amounted to $401 million. Meanwhile, Ethereum and BNB Smart Chain remained major targets for hackers and scammers. The losses underscore the critical importance of heightened security measures in centralized crypto exchange infrastructure.
In a recent report by blockchain security provider, Immunefi, cybercrime in the form of hacks and scams in the crypto sector skyrocketed in Q2 2024, recording a loss of a staggering $572 million - more than double the $220 million loss of Q2 2023. The bulk of these losses were attributable to centralized exchange compromises.
Contrasting the huge leap in Q2 2024 losses, the period before it saw a moderation, with hacks and scam-related losses shrinking by 23% in Q1, as noted by Immunefi. The lull lasted into late May, only to be followed by a sudden spike towards the end of June.
Highlighting the major setbacks of Q2 is the infamous May 31 private key compromise of DMM crypto exchange, where a jaw-dropping $305 million in Bitcoin (BTC) was plundered. Another notable hit was BtcTurk's hacking on June 22, with losses totalling $55 million. These two incidents alone made up over three-fifths of the quarter's losses, as revealed in the report.
Centralized protocols and exchanges took a major hit during the quarter, suffering about $401 million of losses - nearly 70% of the total. Yet, it's noteworthy that the successful breaches on these platforms constituted a tiny fraction of all incidents. Only five were successful against centralized systems, as opposed to 62 successful heists or scams that hit decentralized protocols.
Despite the distressing numbers, DeFi protocols have fared relatively better, registering $171 million of losses - a 25% dip compared to the same period in 2023.
Ethereum and BNB Smart Chain were the primary targets for malicious individuals, covering 71% of overall losses. Interestingly, some signs point to a growing interest among criminals in Ethereum's Layer 2 options. Arbitrum, for instance, was the third most targeted network, while Blast and Optimism each faced three infiltrations. Other networks accounted for a scanty 15% of total losses.
Immunefi founder, Mitchell Amador, stated in the report that the significant losses this quarter are a solemn reminder of the need for robust security for centralized crypto exchange infrastructure.
Not all gloom and doom, some of the funds stolen in Q2 have been recovered by security experts. An instance is the Gala Games protocol attacker who voluntarily returned nearly all stolen funds, purportedly after accidentally revealing his IP address by connecting without a VPN. Companies, including Alex Labs, Bloom, and Yolo Games, also managed to recuperate most of the funds they lost, which added up to 5% of Q2's total losses, according to Immunefi.
Published At
6/27/2024 4:00:00 PM
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