Crypto losses due to hacks and scams reached a staggering $572.7 million in the second quarter of 2024, according to a recent report from Immunefi. This marks a significant increase of 70.3% from the previous quarter and a whopping 112% rise compared to the same period last year. Centralized finance platforms were the primary targets of these breaches, with over $401.4 million lost, accounting for 70% of the total losses. In contrast, decentralized finance platforms accounted for 30% ($171.3 million) of the losses. This is a shift from the first quarter when DeFi platforms were the sole targets.
The two most notable exploits in Q2 were the Japanese cryptocurrency trading platform, DMM Bitcoin, losing $305 million, and the Turkish crypto exchange, BtcTurk, losing $55 million on June 23. These incidents alone made up 62.8% of the total losses. May 2024 recorded the highest monthly losses in the quarter, totaling $358.5 million.
Mitchell Amador, founder and CEO of Immunefi, highlighted the seriousness of infrastructure compromises, emphasizing how a single compromise can lead to millions in damages. He emphasized the need for robust security measures to protect the entire crypto ecosystem.
The rise in attacks on centralized finance platforms can be attributed to their substantial asset pools and security vulnerabilities, making them attractive targets for hackers. Additionally, the increasing value of Web3 protocols, particularly Ethereum (ETH), has drawn the attention of hackers looking for easy money.
Hacks accounted for 98.5% ($564.2 million) of the total losses across 53 incidents, while fraud, scams, and rug pulls represented only 1.5% ($8.5 million) over 19 incidents. Ethereum and BNB Chain were the most targeted networks, with Ethereum accounting for 44.4% of the exploits, followed by BNB Chain and Arbitrum at 5.6%.
Although DeFi platforms have improved their security measures in response to regulatory scrutiny, centralized finance entities are still vulnerable to cyberattacks, presenting opportunities for malicious actors.
Only $26.7 million, representing 5% of the total losses in Q2 2024, has been recovered from stolen funds in four specific situations.