Key Insights:
- The crypto market suffered $1.19 billion in losses in 2024 due to hacks and scams, a 16.3% increase from 2023.
- Centralized exchanges were the primary targets, with WazirX experiencing a massive $235 million loss.
- Ethereum and BNB Chain accounted for 71.4% of all on-chain losses, highlighting their cyberattack vulnerability.
In 2024, the cryptocurrency industry faced severe financial problems, with losses striking $1.19 billion from hacks and scams. The centralized exchanges (CeFIs) have been the hardest hit, with WazirX suffering a significant $235 million loss. Ethereum and BNB Chain remain the primary targets for these attacks, worsening the industry’s challenges.
Massive Losses in July
July was disastrous for the crypto market, with $269.4 million lost in just one month. This figure marks a 90% increase compared to June, making it the second-worst month of the year. The most significant attack occurred on the Indian exchange WazirX, which accounted for 87% of July’s total losses. Allegedly, North Korean hackers were behind this major breach.
Centralized finance projects bore the impact of the attacks, with $636 million lost across six incidents. In contrast, decentralized finance platforms reported $554 million in losses from 143 incidents. The data shows that hacks were accountable for 98% of the losses, while fraud, scams, and rug pulls contributed only $3 million. This trend underscores the vulnerability of centralized exchanges to cyberattacks.
Ethereum and BNB Chain continue to be the top targets for hackers, accounting for 71.4% of all on-chain losses in 2024. Ethereum suffered seven attacks, making it the most targeted blockchain, while BNB Chain experienced three major breaches. These incidents highlight the persistent threats facing these prominent platforms within the crypto ecosystem.
According to Immunefi, the crypto market has experienced a 16.3% increase in losses compared to the same period in 2023, when the total stood at $1.02 billion. This rise in cybercrime emphasizes the growing threats to the industry, with hackers becoming more sophisticated in their methods. The increasing number of attacks reveals the urgent need for improved security measures within the sector.
Notably, the WazirX hack was reportedly arranged by North Korean hacker groups, such as the notorious Lazarus Group. This incident has raised concerns about the involvement of state-sponsored actors in crypto-related crimes. The significant financial impact of these attacks has prompted calls for enhanced international cooperation to combat cyber threats.
Fitzy, the CEO of ChainSwap, provided insights into the current security landscape of the crypto industry. He emphasized that while Web3 technology facilitates innovation, it also presents opportunities for financial crimes. Fitzy noted that the best defense against scams and fraud is caution and awareness, as victims often lack the necessary knowledge to protect themselves.
The report from Immunefi suggests that the crypto industry must adopt more robust security practices to mitigate the risks associated with cyberattacks. As hackers continue to exploit vulnerabilities in both CeFi and DeFi platforms, the need for comprehensive security strategies becomes increasingly apparent. Ensuring the safety of digital assets is paramount for the industry’s long-term growth and stability.
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