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.
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.
Related: Remilia founder claims hack after Ether, NFTs transferred
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.
Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time
