DeFi at Risk! Crypto Hacks Drain $336 Million in Q1 2024, Claims Report

The post DeFi at Risk! Crypto Hacks Drain $336 Million in Q1 2024, Claims Report appeared first on Coinpedia Fintech News

The rise of web3 technologies has sparked a wave of innovation, but it’s also given rise to a new breed of cyber threats. According to a recent study by Immunefi, the cryptocurrency industry has seen significant growth in the first quarter of 2024, but it’s not all smooth sailing.

So what’s brewing and why must you be cautious? Let’s explore.

Overview of losses

With a staggering $100 billion locked in web3 protocols as of March 2024, it’s no wonder that hackers are licking their lips. Immunefi’s analysis reveals that the crypto industry suffered losses totaling $336,311,217 in the first quarter alone.

Despite a 23.1% drop compared to the previous year, indicating some progress in beefing up security, vulnerabilities persist. Two major hacks—OrbitBridge and Munchables—stand out, accounting for a whopping $144,480,000, or 43% of total losses.

Orbit Bridge, a key part of the Orbit Chain cross-chain project, was hit by an $81 million attack on January 1, 2024. Meanwhile, Munchables, a popular NFT game on the Ethereum layer 2 system known as Blast, lost $62M in assets due to a breach on March 26.

Related: FTX Hack Cash Flowed Through Binance: Security Breach or Inside Job?

What’s Taking the Lion’s Share?

The report highlights that hacks make up a whopping 95.6% of overall losses, with fraud making up the remaining 4.4%. Interestingly, all vulnerabilities were found in DeFi, with Cefi platforms remaining unscathed.

Ethereum Leads the Way

Ethereum emerges as the most vulnerable blockchain, with 33 incidents comprising 51% of total losses. BNB Chain follows closely behind, with 14 cases contributing to 22% of losses, while Arbitrum records 6 incidents, resulting in a 9.2% loss.

Despite significant losses, there have been instances of successful fund recovery, totaling $73,885,000 across seven cases. This underscores the need for swift and coordinated action to prevent security breaches.

The Battle for Security Continues

While overall losses are down, concerns remain about the adequacy of security measures. As the crypto industry evolves, stakeholders must remain vigilant and proactive in defending against threats like private key theft.

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