Analysis of Crypto Hacks in Q1 2024: Trends, Damages, and Measures for Recovery
The first quarter of 2024 proved to be a challenging period for the crypto market, as it witnessed numerous on-chain security incidents that posed a threat to the integrity and stability of the cryptocurrency ecosystem. This report aims to provide a comprehensive overview of these hacks, including a monthly breakdown and other relevant details.
Comparing the figures to the same period in 2023, a stark reality becomes apparent. The total financial losses in Q1 2024 amounted to $502,522,934, representing a worrisome increase of 54% compared to the losses incurred in the previous year’s first quarter. Although there was a 3.8% decrease in the percentage of losses compared to Q4 2023, the overall trend remains upward, causing concern within the crypto community.
When analyzing the monthly breakdown of these security incidents, January emerges as the worst month in terms of financial losses. It accounted for a total of $193,132,537 stolen through 78 cases, setting a negative tone for the rest of the quarter. February and March witnessed a decrease in losses, but the number of incidents remained substantial throughout the quarter.
The primary attack vector during Q1 2024 was private key compromises. Although they constituted only 11.7% of all security incidents, they contributed to nearly half of the financial losses, totaling $239,037,879. This emphasizes the need for a robust defense system to protect users’ digital assets, as private keys serve as the gateways to these assets.
When analyzing the attacks based on their types, access control incidents accounted for $78,684,261 in losses and occurred 15 times. Code vulnerability attacks resulted in $42,572,893 in losses across 47 incidents. Exit scams caused losses of $68,314,135 in 34 cases. Flash loan attacks resulted in losses of $37,703,331 in 30 incidents. Phishing attacks caused losses of $64,019,052 in 83 cases. Lastly, there were two other incidents resulting in losses of $229,461. This data further emphasizes the need for enhanced security measures and strategies.
Among the blockchain networks, Ethereum was the most targeted platform, experiencing 131 security incidents that led to a cumulative loss of $139 million. Other notable platforms targeted include BNB Chain, with 36 incidents and losses of $26,351,558, and Ripple, with one incident resulting in losses of $112,500,000. The widespread use and versatility of the Ethereum platform make it an attractive target for malicious actors seeking to exploit vulnerabilities in the ecosystem.
Efforts were made to recover the stolen funds, and a total of $77,970,073 was successfully returned to the victims. The majority of these recovered funds came from the Munchables hack, where the hacker returned all the stolen crypto through successful negotiation. This achievement was made possible through the collaborative efforts of the ecosystem.
Two significant hacks, OrbitBridge and Munchables, stood out due to their substantial losses. Together, they accounted for $144,480,000, representing a significant portion of the total losses in Q1 2024. Orbit Bridge, a bridging protocol of the Orbit Chain cross-chain project, fell victim to an $81 million attack on January 1, 2024. On the other hand, Munchables, an NFT game on the Ethereum layer 2 system called Blast, suffered a loss of full access to its contract, resulting in the withdrawal of assets worth $62 million on March 26.
In conclusion, the report highlights the weak security and stability of the cryptocurrency market, as evidenced by the on-chain security incidents in Q1 2024. The significant financial losses emphasize the urgent need for robust security measures and strategies to safeguard digital assets. As the crypto market continues to evolve, stakeholders must remain vigilant and collaborate to address emerging threats and vulnerabilities.