The crypto industry has faced over $1.19 billion in losses due to hacks and fraud in 2024, marking a 16.3% increase from the previous year. Centralized finance （CeFi） platforms have been the most affected.
Points
- The crypto industry has suffered $1.19 billion in losses due to hacks and fraud in 2024.
- Centralized finance （CeFi） platforms accounted for 87% of July’s losses.
- The WazirX hack was the most significant incident, with a $235 million loss.
According to a recent Immunefi report, the crypto industry has experienced significant financial setbacks since the beginning of 2024, with losses due to hacks and fraud exceeding $1.19 billion. This represents a 16.3% increase compared to the same period in 2023, when losses amounted to $1.02 billion.
CeFi Platforms Hit Hardest
Centralized finance （CeFi） platforms have borne the brunt of these attacks, surpassing decentralized finance （DeFi） in terms of the total volume of funds lost. In July alone, CeFi accounted for 87% of the total losses, while DeFi platforms saw $34.4 million in losses spread across 13 incidents.
Significant Incidents
The most significant loss occurred in July, when the Indian centralized exchange WazirX suffered a devastating $235 million hack. This incident marked India’s largest crypto heist to date and contributed significantly to the month’s total losses of $269.4 million across 14 incidents.
Hacks Remain Predominant
The report highlights that hacks remain the predominant cause of losses, accounting for $266.5 million in July alone. In comparison, fraud and scams only accounted for 1.1% of the total losses for the month. Ethereum and BNB Chain were the most targeted blockchain networks, collectively accounting for 71.4% of the total losses. Ethereum alone suffered seven attacks, representing half of the total incidents.
Expert Opinions
ChainSwap’s founder and CEO, Fitzy, emphasized that while Web3 technology drives innovation, it also opens avenues for financial crimes and fraud. He noted that Web3 tools aren’t inherently criminogenic but are exploited as new mediums by scammers.
Similarly, Slava Demchuk, CEO of AMLBot, pointed out that the significant losses due to hacker attacks and fraud highlight the urgent need for robust security measures. He suggested that beyond implementing general software security and encryption, conducting frequent audits and penetration tests is crucial.
解説
- CeFi vs. DeFi: The substantial losses in CeFi platforms highlight the vulnerabilities in centralized systems. Understanding these weaknesses can help investors and developers focus on enhancing security protocols.
- Hacking Trends: The predominance of hacks over fraud and scams underscores the need for improved cybersecurity measures. Continuous monitoring and adopting best practices can mitigate these risks.
- Security Measures: Experts emphasize the importance of regular audits, penetration tests, and robust encryption to safeguard digital assets. Implementing these measures can help prevent significant financial losses.
- Blockchain Targeting: The frequent targeting of Ethereum and BNB Chain indicates the need for these networks to strengthen their security frameworks. Developers and network participants should be vigilant and proactive in addressing potential vulnerabilities.
In summary, the crypto industry’s losses due to hacks and fraud in 2024 highlight the need for enhanced security measures, particularly for CeFi platforms. Continuous monitoring, regular audits, and robust encryption are crucial in mitigating these risks and protecting digital assets.