Report Reveals Cryptocurrency Hacks Surpass 15 Billion in The First Half of 2024
Key Highlights
The first half of 2024 witnessed a dramatic surge in crypto hacks, with perpetrators making off with over $1.5 billion, marking a staggering 293% increase from the previous year’s comparable period.
DeFi protocols bore the brunt of these attacks, primarily due to vulnerabilities in their intricate smart contracts.
Noteworthy breaches included hacks on exchanges, a gaming platform, instances of social engineering, and personal wallet theft.
The initial six months of 2024 proved tumultuous for the cryptocurrency sector, notably marred by a substantial uptick in significant cyber incidents. PeckShield’s H1 annual report documented over 200 notable events, resulting in losses totaling $1.56 billion. Alarmingly, recovery efforts only managed to reclaim $319 million. This starkly contrasts with 2023’s equivalent timeframe, which recorded losses of $480 million.
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The first half of 2024 saw over 200 major crypto hacks, resulting in approximately $1.56 billion in losses, with $319 million recovered. This marks a significant 293% increase from the same period in 2023, where losses amounted to $480 million.
#DeFi
DeFi protocols remained primary targets, accounting for $81 million—59% of the total stolen assets. These decentralized applications (DApps) entice hackers due to their complex smart contract code often harboring exploitable vulnerabilities.
Flash loan attacks, leveraging unsecured borrowing, comprised 24% of these breaches, with the remaining 76% employing sophisticated techniques to breach security measures.
Major Blockchains Under Siege
More than 20 public blockchains fell victim, with Ethereum, Bitcoin, and XRP chains enduring the most assaults. Ethereum and BNB Chain were particularly popular among hackers, each accounting for 31.3% of all hacks. Arbitrum followed closely with losses amounting to 12.5%.
Top Five Hacks of H1 2024
1. DMM Bitcoin
Loss Amount:
$305 million
The largest hack of the period targeted DMM Bitcoin, a major exchange. Hackers executed a sophisticated phishing attack, duping employees into revealing critical access codes, thereby gaining entry to the system and looting user funds.
2. PlayDapp
Loss Amount: $290 million
PlayDapp, a cryptocurrency gaming platform, fell victim to a flash loan attack. Perpetrators exploited the platform’s smart contracts to manipulate token prices and drain funds from liquidity pools.
3. Gala Games
Loss Amount: $290 million
Gala Games suffered a breach through social engineering tactics and targeted smart contract manipulation. The gaming and NFT marketplace, catering to a burgeoning audience, saw valuable NFTs and tokens pilfered.
4. Chris Larsen
Loss Amount: $112.5 million
Co-founder of Ripple, Chris Larsen, faced a significant breach of personal security protocols, resulting in substantial losses from his crypto assets due to mismanagement of private keys.
5. BTCturk
Loss Amount: $100.25 million
BTCturk, a Turkish exchange, endured a severe breach bypassing multi-factor authentication. Attackers accessed hot wallets, withdrawing substantial sums from client balances.
With the cryptocurrency market expanding, so too are the threats posed by malicious actors. Implementing robust security measures, continuous auditing of smart contracts, and enhancing personal security protocols are imperative to counter these evolving dangers.
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