Hacks, Scams Cost Crypto Over $1.2B in 2024, Says Immunefi

The BIT Journal reports that the crypto industry has been hit hard by hacks and scams in 2024, surpassing $1.2 billion in losses. This marks a 15.5% increase from last year, according to a new report by Immunefi, a web3 bug bounty and security services platform. Despite a sharp drop in losses during August, the total impact of these hacks and scams on the industry remains significant.

August saw a dramatic decrease in hacks and scams compared to the previous month, with losses falling by 95% to $15.1 million from $274.7 million in July. This drop, while significant, still highlighted the persistent threat of hacks and scams within the crypto space. The losses in August were the result of five specific incidents, the lowest number recorded so far this year. However, these incidents still managed to cause substantial damage.

The largest loss in August stemmed from a $12 million outflow to MEV bots from the Ronin Network bridge due to an upgrade bug on August 6. Fortunately, the outflow was later attributed to white-hat hackers, who returned the funds in exchange for a $500,000 bounty. The Ronin Network bridge had previously been the target of a massive hack in March 2022, where over $600 million was stolen in what remains the largest DeFi exploit in history.

Hacks and Scams Target Ethereum and BNB Chain

The BIT Journal highlights that Ethereum and BNB Chain were the primary targets for hacks and scams in August. All five incidents that occurred during the month involved these two networks. Ethereum experienced three separate attacks, while BNB Chain was hit twice. These attacks show the ongoing vulnerabilities within the crypto ecosystem, particularly in the most popular networks.

Immunefi’s report also noted that hacks continue to be the leading cause of crypto losses, far outpacing fraud. In fact, 100% of the losses in August were due to hacks, reinforcing the need for increased security measures across the industry.

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Hacks and Scams in DeFi and CeFi

DeFi protocols bore the brunt of the hacks and scams in August, with Nexera incurring the second-largest loss of $1.5 million. Other protocols like VOW, Convergence Finance, and iVest DAO also suffered losses. Interestingly, no CeFi incidents were recorded during the month, indicating a shift in the focus of attackers towards DeFi platforms.

Immunefi’s efforts to combat these hacks and scams have been significant. In June, the platform surpassed $100 million in payouts to ethical hackers and researchers who have helped identify vulnerabilities across various blockchain networks. These efforts have been crucial in preventing even larger losses, with over $25 billion in user funds reportedly saved from being stolen.

Hacks and Scams Remain a Persistent Threat

In conclusion, hacks and scams remain a serious threat to the crypto industry, with losses in 2024 already surpassing $1.2 billion. This figure highlights the growing challenge of securing digital assets against increasingly sophisticated attacks. Despite a notable drop in both the number and severity of incidents in August, the overall damage caused by these hacks and scams cannot be overlooked.

The reduction in losses during August may offer some relief, but it does not change the fact that the crypto industry has suffered significant financial damage this year. The ongoing presence of these threats underlines the urgent need for stronger security measures and vigilance across the industry. As the year progresses, the total impact of these attacks will continue to shape the security strategies of crypto platforms and the confidence of their users.

The BIT Journal will continue to monitor the situation closely, providing updates on the latest developments in the fight against crypto hacks and scams. The industry must remain on high alert as these threats show no signs of disappearing anytime soon.