You Won’t Believe How Much Hackers Stole From Cryptocurrencies In Just 6 Months

The cryptocurrency and decentralized finance (DeFi) sectors suffered losses of $1.19 billion in the first half of 2024 due to cyberattacks, scams, and exploits, according to a new report from blockchain security firm CertiK.

The “Hack3d: The Web3 Security Quarterly Report” for Q2 and H1 2024, released this week, paints a sobering picture of the ongoing security challenges facing the cryptocurrency industry. Phishing attacks have emerged as the most damaging vector, with losses of $497.7 million across 150 incidents.

“The second quarter of 2024 saw the largest losses since the third quarter of the previous year, despite a relatively quiet quarter in which markets mostly consolidated first-quarter gains,” the report emailed to Finance Magnates read.

Private key compromises were the second most expensive type of attack, resulting in losses of $408.9 million across 42 major incidents. The Ethereum blockchain bore the brunt of the attacks, suffering 235 security incidents resulting in losses of nearly $400 million.

The largest single incident of the period was an attack on the Japanese DMM Bitcoin exchange, which resulted in a staggering loss of $304.7 million. Other notable breaches included a $112.5 million loss by Chris Larsen and a $90 million hack of Turkish exchange BtcTurk.

Despite the overall increase in losses, there was a silver lining: approximately $177.8 million was returned to victims in 18 separate incidents in the first half, reducing net losses for the period to $1.01 billion.

For comparison, it is estimated that during 2023 investors and exchanges will have lost $2 billion in cryptocurrenciesWhile these figures are alarming, they were still half of the record year of 2022, when losses reached nearly $4 billion.

Cryptocurrency losses rise to $688 million in Q2 2024

The report also provided a breakdown of data from the second quarter of 2024, which highlighted a worrying trend:

• In Q2 alone, $688.1 million was lost in 184 onchain security incidents, a 37% increase in lost value compared to Q1 2024. This is significantly higher. compared to $300 million recorded in the second quarter of the previous year.
• Phishing remained the dominant attack vector in the second quarter, with losses of $433.7 million across 67 incidents.
• Ethereum remained the most targeted chain in Q2, with 83 incidents resulting in losses of $170.6 million.

Source: CertiK

“Overall, Q2 2024 was marked by significant financial losses due to security breaches, underscoring the ongoing challenges in the cryptocurrency and DeFi sectors. Phishing attacks and code vulnerabilities remain prevalent, with substantial losses impacting both individual users and large platforms,” the report added.

The lingering security concerns highlighted by CertiK’s findings could pose a challenge to platforms seeking to demonstrate the robustness and reliability of their systems, especially as the industry grapples with increased regulatory scrutiny and attempts to attract institutional investors.

The cryptocurrency and decentralized finance (DeFi) sectors suffered losses of $1.19 billion in the first half of 2024 due to cyberattacks, scams, and exploits, according to a new report from blockchain security firm CertiK.

The “Hack3d: The Web3 Security Quarterly Report” for Q2 and H1 2024, released this week, paints a sobering picture of the ongoing security challenges facing the cryptocurrency industry. Phishing attacks have emerged as the most damaging vector, with losses of $497.7 million across 150 incidents.

“The second quarter of 2024 saw the largest losses since the third quarter of the previous year, despite a relatively quiet quarter in which markets mostly consolidated first-quarter gains,” the report emailed to Finance Magnates read.

Private key compromises were the second most expensive type of attack, resulting in losses of $408.9 million across 42 major incidents. The Ethereum blockchain bore the brunt of the attacks, suffering 235 security incidents resulting in losses of nearly $400 million.

The largest single incident of the period was an attack on the Japanese DMM Bitcoin exchange, which resulted in a staggering loss of $304.7 million. Other notable breaches included a $112.5 million loss by Chris Larsen and a $90 million hack of Turkish exchange BtcTurk.

Despite the overall increase in losses, there was a silver lining: approximately $177.8 million was returned to victims in 18 separate incidents in the first half, reducing net losses for the period to $1.01 billion.

For comparison, it is estimated that during 2023 investors and exchanges will have lost $2 billion in cryptocurrenciesWhile these figures are alarming, they were still half of the record year of 2022, when losses reached nearly $4 billion.

Cryptocurrency losses rise to $688 million in Q2 2024

The report also provided a breakdown of data from the second quarter of 2024, which highlighted a worrying trend:

• In Q2 alone, $688.1 million was lost in 184 onchain security incidents, a 37% increase in lost value compared to Q1 2024. This is significantly higher. compared to $300 million recorded in the second quarter of the previous year.
• Phishing remained the dominant attack vector in the second quarter, with losses of $433.7 million across 67 incidents.
• Ethereum remained the most targeted chain in Q2, with 83 incidents resulting in losses of $170.6 million.

Source: CertiK

“Overall, Q2 2024 was marked by significant financial losses due to security breaches, underscoring the ongoing challenges in the cryptocurrency and DeFi sectors. Phishing attacks and code vulnerabilities remain prevalent, with substantial losses impacting both individual users and large platforms,” the report added.

The lingering security concerns highlighted by CertiK’s findings could pose a challenge to platforms seeking to demonstrate the robustness and reliability of their systems, especially as the industry grapples with increased regulatory scrutiny and attempts to attract institutional investors.

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