- Hackers continue to run rampant in the crypto industry.
- The crypto industry has incurred nearly $1 billion in losses due to hacks and scams.
- Immunefi’s latest report reveals crypto hacks and scams are spreading like wildfire.
Hackers continue to wreak havoc in the crypto industry, especially as the market buzzes with excitement and desperation. After clocking over $300 million during the first quarter, crypto losses accelerate even further in Q2, just as more people join the fray to ride the hype.
Another Quarter of Crypto Losses
According to the latest report from web3 security services platform Immunefi, the crypto industry lost over $573 million to hacks and scams in the second quarter of the year across 72 incidents.
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The losses mark a nearly 70% jump from the $300 million stolen in Q1 and a staggering 112% increase compared to Q2 2023 when hackers and fraudsters made off with $265.5 million. Year-to-date, over $900 million has been pilfered through hacks and fraud, up 24% compared to last year, according to Immunefi’s data.
Typically, the DeFi industry bears the brunt of these attacks, thanks to its lucrative $100 billion market and extensive list of decentralized exchanges. In its Q1 report, Immunefi noted that DeFi accounted for 100% of the exploits identified by the web3 bug bounty platform. However, this quarter sees a massive shift in targets.
CeFi Becomes Primary Target for Crypto Hacks and Scams
In Q2, centralized finance emerged as the main target for crypto hackers and scammers, responsible for 70% ($401.4 million) of the quarter’s losses, compared to 30% ($171.3 million) for DeFi.
The bulk of these losses stemmed from two major exploits, totaling $360 million, or 62.8% of the overall losses. Japanese cryptocurrency trading platform DMM Bitcoin held the lion’s share, registering over $305 million in losses. Turkish crypto exchange BtcTurk made up the remainder.
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Offering his views on the quarter, Immunefi founder and CEO Mitchell Amador said,
“This quarter highlights how infrastructure compromises can be the most devastating hacks in crypto, as a single compromise can lead to millions in damages.”
“This was evident during this quarter, where losses surged primarily due to hacks targeting CeFi infrastructure, surpassing DeFi, despite a smaller number of hacks in that sector. Robust measures to safeguard the entirety of the ecosystem are crucial,” he added.
May saw the highest monthly losses in Q2, totaling $358.5 million. Offering some reprieve, $28.7 million of the stolen funds were recovered from four exploits: Bloom, ALEX Lab, Gala Games, and YOLO Games, suggesting that fund recovery has been slightly more effective this quarter.
Hackers Dominate Crypto Scams, Again
Hackers continued to be the primary cause of losses, responsible for 98.5% of the stolen funds across 53 incidents. Fraud, scams, and rug pulls accounted for approximately $9 million in losses across 19 incidents.
Once again, Ethereum and BNB Chain were the two most targeted chains this quarter. Ethereum experienced the most individual attacks, with 34 incidents, representing 46.6% of the losses on chains, followed by BNB Chain, with 18 incidents, representing 24.7%. Other chains, including Arbitrum, Blast, Optimism, Solana, Polygon, Fantom, Linea, Mantle, and TON, made up the remainder of the incidents.
On the Flipside
- Earlier this month, Immunefi surpassed $100 million in ethical hacker and researcher payouts.
- Crypto users lost a total of $1.8 billion to hacks in 2023.
Why This Matters
Immunefi’s latest report is a stark reminder that hackers remain active in their pursuit of illicitly gaining funds, showing no signs of slowing down. Therefore, users should take proactive measures and exercise due diligence to protect themselves.
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