Crypto losses due to hacks and fraud have soared to $1.7 billion in 2024, surpassing last year’s total losses already. Significant incidents, particularly in DeFi spaces, are contributing to this rise, with Ethereum and BNB Chain cited as major targets. Security measures are reportedly improving, although the landscape remains precarious for users.
The crypto landscape has taken a massive hit this year, with losses from hacks and fraud hitting $1.7 billion, a figure that already exceeds the total losses recorded for all of 2024, which tallied $1.49 billion, as per data from security firm Immunefi. Notably, this is a staggering jump from last year’s equivalent figure of $420 million lost to cyberattacks and scams, highlighting a worrying trend in the decentralized finance (DeFi) realm.
The wide-scale losses have been predominantly due to hacks, with cybercriminals reportedly stealing nearly $100 million just in April alone. A considerable chunk of this distressing figure is attributed to the infamous hacking of the Bybit exchange, which saw $1.4 billion in Ethereum and related assets vanish, marking it as the largest hack in the crypto sector’s history. Such incidents underscore the ongoing vulnerabilities within crypto frameworks, particularly in DeFi networks.
DeFi, which aims to revolutionise traditional finance by automating services like lending and banking, has proven to be especially prone to security breaches. April alone saw hackers target decentralized networks in 15 separate attacks, siphoning off a collective $92.4 million. The detrimental impact of these attacks raises alarms about the inherent risks associated with DeFi apps, which, while promising, remain in an experimental stage and attract criminal attention.
Despite these grim statistics, there’s a glimmer of hope. Mitchell Amador, founder and CEO of Immunefi, stated that while DeFi is still operating in a challenging environment, security measures have markedly improved. He suggested that established projects are becoming more secure, making it tougher for hackers to exploit weaknesses. The overall security stack for many key projects has developed far beyond what was seen a couple of years back, offering some reassurance to investors and users.
Immunefi’s report also highlighted specific trends in the April data, revealing that Ethereum and the BNB Chain were among the most targeted, accounting for 60% of total blockchain-related losses. As the year continues, the crypto industry is forced to reckon with these alarming figures while simultaneously hoping for robust developments in security to mitigate future incidents.
