Report Claims $336 Million Drained from DeFi in Q1 2024 due to Crypto Hacks
Crypto losses resulting from hacks and scams experienced a 23% decrease in the first quarter of 2024, yet the industry still suffered a total loss of $336 million. DeFi platforms were the primary targets, with significant losses incurred by hacks on OrbitBridge and Munchables. Although some of the stolen funds were recovered, vulnerabilities remain, particularly in relation to private key security. The emergence of web3 technologies has brought about a surge in innovation, but it has also given rise to a new breed of cyber threats. Immunefi’s recent study highlights the substantial growth of the cryptocurrency industry in Q1 2024, but caution is still warranted.
Loss Overview
With an astounding $100 billion locked in web3 protocols as of March 2024, it is no surprise that hackers are enticed. Immunefi’s analysis reveals that the crypto industry suffered losses amounting to $336,311,217 in the first quarter alone. While this represents a 23.1% drop compared to the previous year, indicating some improvement in security measures, vulnerabilities persist. Notably, two major hacks—OrbitBridge and Munchables—accounted for a staggering $144,480,000, which is 43% of the total losses. On January 1, 2024, Orbit Bridge, a crucial component of the Orbit Chain cross-chain project, fell victim to an $81 million attack. Similarly, Munchables, a popular NFT game on the Ethereum layer 2 system called Blast, suffered a breach resulting in the loss of $62 million in assets on March 26.
The Main Culprits
The report emphasizes that hacks make up a staggering 95.6% of the overall losses, with fraud accounting for the remaining 4.4%. Interestingly, all vulnerabilities were found in DeFi, while Cefi platforms remained unscathed.
Ethereum Takes the Lead
Ethereum emerges as the most susceptible blockchain, with 33 incidents contributing to 51% of the total losses. BNB Chain closely follows, with 14 cases accounting for 22% of losses, while Arbitrum records 6 incidents resulting in a 9.2% loss.
Despite substantial losses, there have been instances of successful fund recovery, with a total of $73,885,000 recovered across seven cases. This highlights the importance of swift and coordinated action to prevent security breaches.
The Ongoing Battle for Security
While overall losses have decreased, concerns persist regarding the adequacy of security measures. As the crypto industry continues to evolve, stakeholders must remain vigilant and proactive in defending against threats such as private key theft.
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