In a positive turn of events for the cryptocurrency industry, hacking-related losses have decreased by 23.1% in the first quarter of this year, totaling $336.3 million, compared to previous years.
According to a report by Immunefi, crypto projects encountered losses exceeding $321 million due to 46 hacking incidents and 15 fraudulent activities within the initial three months of 2024.
Decentralized finance (DeFi) platforms emerged as the primary targets for hackers, accounting for 100% of the industry’s losses. Mitchell Amador, CEO of Immunefi, highlighted that DeFi platforms are particularly vulnerable to private key compromises, underscoring the urgent need to fortify both code and protocol infrastructure.
The number of hacker attacks in Q1 2024 decreased by 17.5% compared to the same period last year, with Ethereum (ETH) being the most targeted blockchain, falling victim to 33 incidents. The BNB Chain (BNB) blockchain followed closely, with 14 reported attacks. Together, Ethereum and BNB Chain accounted for over 73% of the total losses.
Among the largest hacks during this period were breaches of the Orbit Bridge and the Munchables web3 gaming platform, resulting in losses exceeding $81 million and nearly $63 million, respectively. PlayDapp and FixedFloat also suffered substantial losses, amounting to $32 million and $26 million, respectively.
Hacking remains the predominant method of crypto theft, constituting 95.6% of total losses, while fraud accounts for only 4.4%. Notably, fraud cases have decreased by 22.4% over the past year.
In terms of funds recovered, only 22% of stolen assets, totaling $73 million, were returned this year, compared to $19 million recovered in 2023.
Remarkably, the centralized finance (CeFi) sector reported zero losses in Q1 2024, a stark contrast to the $1.8 million lost during the same period last year.
The decline in hacking-related losses coupled with the absence of losses in the CeFi sector signify promising strides towards enhancing security measures within the cryptocurrency industry. However, continued vigilance and proactive measures remain imperative to mitigate risks and safeguard investors’ assets.
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