Crypto hacking incidents decline in Q1 2024 — Immunefi

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The cryptocurrency industry saw a 23% decline in losses due to hacking and scams in the first quarter of 2024 compared to 2023, according to a March 28 research report by blockchain security firm Immunefi.

According to the report, the total amount lost to hacking and fraud incidents in Q1 of 2024 amounted to approximately $336.3 million, down from $437.5 million in the same quarter of 2023.

The report identifies 46 hacking incidents and 15 cases of fraudulent activities.

Source: Immunefi

With nearly $100 billion of total value locked in Web3 protocols, Decentralized finance (DeFi) platforms remain a primary target for hackers, accounting for 100% of the exploits identified by Immunefi in Q1, compared to zero for centralized (CeFi) platforms.

Two projects accounted for the bulk of the losses, totaling $144.5 million, constituting 43% of the overall amount. The largest attack, amounting to $81.7 million, targeted the cross-chain bridge protocol Orbit Bridge during New Year celebrations. January saw the highest monthly losses in Q1, totaling $133 million.

Mitchell Amador, CEO of Immunefi, stressed the susceptibility of DeFi platforms to private key breaches, highlighting the pressing necessity for enhanced security measures across code and protocol infrastructure.

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At the close of the quarter, the second-largest attack involved a $62 million exploit on Blast-based NFT game Munchables. However, recovery occurred within 24 hours as the hacker surrendered the private keys to the wallet containing Munchables’ assets. 

Overall, $73.9 million (22%) of the stolen funds from seven exploits in Q1 were retrieved. The number of attacks also decreased by 17.6%, from 74 in Q1 2023 to 61 this year.

In Q1, hacks dominated losses, comprising 95.6% ($321.6 million) across 46 incidents, while fraud, scams, and rug pulls accounted for 4.4% ($14.7 million) over 15 incidents. Ethereum reclaimed its position as the most targeted chain, surpassing BNB Chain, with both networks accounting for 73% of total losses combined.

Ethereum faced the highest number of attacks, with 33 incidents, constituting 51% of the losses. BNB Chain experienced 12 attacks, representing 22% of the exploited funds. Other incidents occurred on Arbitrum, Solana, Optimism, Bitcoin, Blast, Polygon, Conflux Network, and Base.

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