2024 Crypto Hacks Surge to $2.1B, CeFi Faces Major Losses

As of 2024, the financial losses due to crypto hacks have already surpassed the entire total from 2023, establishing a new high. The increase in cyberattacks underscores the escalating risks in the sector and highlights the urgent need for effective solutions.

In a report exclusively available to BeInCrypto, Cyvers played an essential role in identifying all reported crypto attacks in the third quarter of 2024, with approximately half of these incidents detected solely by their system. With AI-driven monitoring, real-time alerts from Cyvers successfully mitigated additional financial losses, illustrating the crucial importance of advanced protective tools for digital assets.

Crypto Hacks in 2024 Reach Unprecedented Levels, Unveiling Significant Security Gaps

The first three quarters of 2024 experienced losses from crypto hacks totaling $2.114 billion, exceeding the overall amount for all of 2023. This signifies a sharp 72% rise compared to the same timeframe last year, emphasizing the increasing susceptibility of both centralized and decentralized platforms.

Important Figures:

• Jan-Sept 2023: $1.23 billion lost
• Full year 2023: $1.69 billion
• Jan-Sept 2024: $2.114 billion

Centralized finance (CeFi) platforms have particularly been victimized, with a staggering 1,000% increase in attacks year-over-year. In contrast, decentralized finance (DeFi) platforms saw a 25% decrease in losses, though they still face risks due to intricate smart contracts and protocols.

Surge in CeFi Hacks

CeFi platforms have borne the brunt of the attacks in 2024, with an astonishing 984% rise in crypto hacks. The second quarter of 2024 alone recorded $401 million in losses stemming from five significant incidents.

The most notable breach occurred at the DMM Bitcoin exchange, leading to a loss of $305 million. Additionally, Turkey’s BtcTurk suffered a loss of $55 million, along with other exchanges like Lykke and FixedFloat.

Read more: 15 Most Common Crypto Scams To Look Out For

This influx of CeFi attacks highlights an urgent necessity for enhanced security measures and regulatory intervention to avert future losses.

DeFi Platforms Experience Fewer Losses Yet Remain Vulnerable

DeFi platforms reported a 25% reduction in losses compared to the equivalent timeframe in 2023. Nevertheless, $171.3 million was lost across 62 incidents in Q2 2024, with Ethereum and BNB Chain continuing to be prime targets due to their extensive ecosystems.

Analysis of Vulnerabilities

• Access Control Breaches:
  • 2023 (Jan-Sept): $742.6 million
  • 2024 (Jan-Sept): $1.62 billion (99% increase)
• Smart Contract Exploits:
  • 2023 (Jan-Sept): $429.6 million
  • 2024 (Jan-Sept): $380.4 million (19% decrease)

Statistics on Crypto Hacks

The total number of hacking incidents has markedly increased:

• 2023 (Jan-Sept): 44 incidents
• 2024 (Jan-Sept): 131 incidents (197% increase)

Detailed breakdowns include:

• Smart Contract Exploits: Increased from 28 in 2023 to 79 in 2024 (182% rise)
• Access Control Breaches: Increased from 16 in 2023 to 51 in 2024 (218% rise)

The report emphasizes the necessity for improved cross-chain security and more effective real-time threat detection. As crypto confronts increasingly sophisticated attacks, including those powered by AI, robust security measures and expedited regulatory responses are vital for safeguarding assets.

Read more: A Guide to the Best AI Security Solutions in 2024

Even though DeFi has reported fewer losses, the entire crypto industry remains at significant risk. Enhancing security measures and adopting more proactive strategies will be critical to preventing future losses and securing the expanding crypto landscape.