Crypto Industry Witnessed a 23% Decline in Losses Due to Hacks: Report

The crypto industry has been marred by hacking and fraudulent activities in recent years, but there’s a glimmer of hope in the latest data. A recent report by blockchain security firm Immunefi reveals a notable 23% decline in losses attributed to hacking and scams during the first quarter of 2024 compared to the same period in 2023.

According to Immunefi’s research, the total amount lost to hacking and fraud incidents in Q1 2024 stood at approximately $336.3 million, down from $437.5 million in Q1 2023. Despite this positive trend, the crypto industry remains vigilant as threats persist.

As reported earlier by TheCoinRise, Prisma Finance, a non-custodial and decentralized finance (DeFi) protocol, fell victim to a significant hacking incident, losing $9 million in the incident.

Crypto Investors Face DeFi Hacks

Decentralized finance (DeFi) platforms continue to be a prime target for hackers, with nearly $100 billion in total value locked in Web3 protocols. All of the exploits identified by Immunefi in Q1 2024 targeted DeFi platforms, underscoring the importance of bolstering security measures across these decentralized systems.

Hacking Incidents

Two significant incidents dominated the headlines, accounting for a substantial portion of the total losses. The largest attack, amounting to $81.7 million, targeted the cross-chain bridge protocol Orbit Bridge on New Year’s Eve. 

Another notable exploit in the crypto space involved a $62 million attack on the Blast-based non-fungible token game Munchables. Fortunately, in the latter case, funds were swiftly recovered within 24 hours as the hacker surrendered the private keys.

Silver Lining for the Crypto Space

Despite these high-profile incidents in the crypto industry, there is a silver lining. Immunefi reports that $73.9 million, or 22% of stolen funds from seven exploits, were successfully retrieved. This highlights the effectiveness of swift action and collaborative efforts within the cryptocurrency community to mitigate losses.

The report also sheds light on the distribution of attacks across different blockchain networks. Ethereum emerged as the most targeted chain, accounting for 51% of the losses, followed by the BNB chain with 22%. Other incidents were identified across various networks, including Arbitrum, Solana, and Bitcoin, among others.

Increased Security

Mitchell Amador, CEO of Immunefi, emphasized the pressing need for enhanced security measures, particularly on DeFi platforms vulnerable to private key breaches. As the crypto industry continues to evolve, stakeholders must remain proactive in addressing security vulnerabilities to safeguard investor funds and maintain trust in the ecosystem.

While the decline in losses is a positive development, it’s crucial to recognize that the threat landscape is ever-evolving. Continued investment in robust security infrastructure and proactive risk management strategies will be essential to safeguarding the integrity of the cryptocurrency space moving forward.