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Crypto Sector Experienced $1.49 Billion Loss Due to Hacks and Fraud in 2024, Marking a 17% Year-Over-Year Decrease: Immunefi
The cryptocurrency sector experienced losses amounting to $1.49 billion in 2024 due to hacking and fraud, representing a 17% reduction compared to 2023.
A report from the blockchain security firm Immunefi indicated that hacks were predominantly responsible, contributing $1.47 billion or 98.1% of the overall losses across 192 events.
Fraud, which includes rug pulls and scams, accounted for a mere 1.9% of the losses at $28 million, although this category saw a 72% rise year-on-year.
Successful Attacks Decreased by 27%
The reduction in total cryptocurrency losses is indicative of enhanced security protocols, as the number of successful attacks also dropped by 27.5%, from 320 in 2023 to 232 in 2024.
The report highlighted two notable incidents as the largest losses of the year.
In May, Japan’s DMM Bitcoin exchange experienced a $305 million breach of its private key, while WazirX, the leading crypto exchange in India, lost $235 million in July after hackers infiltrated its Ethereum-based multisig wallet.
Collectively, these two occurrences represented 36% of the total losses.
In 2024, hackers appropriated $2.2 billion from cryptocurrencies, marking a 21% increase from the previous year. Significant losses included $305M from Japan’s DMM Bitcoin and $235M from India’s WazirX. North Korea appropriated $1.3B to evade sanctions. Most attacks were directed at major platforms.#CryptoTips #TradeSmart… pic.twitter.com/Wo4ZhLOv0s
— Fiona K (@Fiona_Kzh) December 20, 2024
Decentralized finance (DeFi) protocols continued to be primary targets, accounting for 51.4% of the losses, while centralized finance (CeFi) platforms made up 48.6%.
Notably, CeFi losses surged by 77.5% year-on-year, reaching $726 million.
Ethereum and Binance Smart Chain were the most frequently attacked blockchains, with Ethereum experiencing 104 incidents that resulted in 44% of the total chain losses.
The report also underscored the significant involvement of North Korean-affiliated hacking groups, which were responsible for $285 million in losses through advanced attacks on platforms such as WazirX and Radiant Capital.
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Their methods included social engineering and malware-infested PDFs aimed at developers.
Q2 2024 Was the Most Devastating
On a quarterly basis, Q2 2024 was the most devastating, with losses totaling $572.6 million, driven by major incidents at DMM Bitcoin and BtcTurk.
Q4 recorded the lowest losses at $150.5 million, indicating improved resilience throughout the year.
Despite the alarming figures, $115.6 million was recovered in 14 incidents, representing 7.7% of the stolen assets.
For example, Munchables successfully reclaimed $62.8 million after the developer revealed the compromised private keys, while Thala recovered its $25.5 million loss through law enforcement intervention.
“Despite advancements in enhancing crypto safety, particularly regarding hacks per dollar, the sector continues to encounter significant challenges,” stated Mitchell Amador, CEO of Immunefi.
“The stakes are considerable, and we will also observe an unprecedented increase in security innovations, with AI-driven tools and decentralized security solutions becoming vital in the effort to protect the ecosystem.”
Recently, New Zealand’s Financial Markets Authority (FMA) issued a warning regarding a rising wave of crypto scams targeting social media users.
The regulatory body noted that the fraudsters primarily operate through YouTube channels and messaging platforms like WhatsApp and Telegram, enticing unsuspecting users with promises of lucrative investment opportunities.
In a separate case, Nigeria’s Economic and Financial Crimes Commission (EFCC) arrested 792 individuals in connection with an alleged large-scale crypto romance scam.
The arrests occurred on December 10 at a location in Lagos, Nigeria’s largest city, believed to be a significant center for fraudulent activities.
The post Crypto Industry Lost $1.49B to Hacks and Fraud in 2024, a 17% Decline YOY: Immunefi appeared first on Cryptonews.
