Top 2 Victims of Crypto Hacks and Frauds in May 2024 Revealed
Cryptocurrency enthusiasts experienced a turbulent month in May 2024, as Immunefi’s latest report revealed significant losses due to hacks and fraud. However, amidst these challenges, interesting trends emerged.
The question arises – are we making progress in the battle against crypto crime, or are hackers simply changing their strategies? Let’s delve deeper to find the answers.
A Promising Sign: Decreasing Losses
Compared to 2023, May 2024 witnessed a noticeable decrease in total losses, amounting to $473,229,944, marking a 20% downturn. This shift indicates potential improvements in security measures or a change in cybercriminal tactics.
Noteworthy Incidents in May 2024
Throughout May 2024, the crypto community grappled with losses totaling $52,371,900 across 21 incidents. While this figure is significant, it represents a decline from both the previous year and April 2024, offering a glimmer of hope amidst the challenges.
The majority of the financial losses in May were concentrated in two major incidents:
Gala Games:
This crypto gaming project suffered a loss valued at $21 million, making it the largest single loss of the month. Gala Games has been one of the leading blockchain gaming firms in the industry, making this failure a reminder that no project, no matter its potential, is immune to risks.
Sonne Finance:
A decentralized lending app, Sonne Finance, lost $20 million. This case once again highlights the potential dangers lurking in DeFi lending platforms, which are risky due to their volumes.
Hacks vs. Frauds Analysis
Hacking incidents continued to dominate, accounting for a staggering 96% of total losses in May 2024. A total of $50,618,600 was stolen in 14 hacking attacks, emphasizing the persistent threat posed by cyber intruders.
While less common, fraud remained a significant concern, comprising 3% of reported incidents and resulting in $1,753,300 in losses. This emphasizes the importance of remaining vigilant against all forms of cybercrime.
Decentralized Finance (DeFi) platforms bore the brunt of these attacks, with 21 incidents resulting in losses totaling $52,371,900. This underscores the urgent need for enhanced security measures within this rapidly growing sector.
A Shift in Focus: CeFi vs. DeFi
Interestingly, Centralized Finance (CeFi) platforms remained unaffected, indicating a potential shift in hackers’ focus towards decentralized systems.
Targets Identified: Ethereum and BNB
Ethereum and Binance Coin (BNB) emerged as prime targets, collectively accounting for 62% of the total losses. Ethereum experienced nine instances of exploitation, constituting 43% of the losses, while BNB Chain suffered four occurrences, resulting in a 19% loss.
Other chains impacted include Base, Arbitrum, Solana, TON, Blast, Fantom, Optimism, Polygon, and Polygon, contributing 8% of the total losses.
When Will Action Be Taken?
The aforementioned figures for May 2024 indicate an overall decline in crypto losses compared to previous years and months. According to the data, funds stolen in cyber attacks are still primarily focused on DeFi platforms, with Ethereum and BNB Chain leading in terms of theft percentage.
In conclusion, while crypto losses are declining, the fight against crime continues!
Tags: Hack