Q1 witnesses a 23% reduction in losses from hacking within the crypto industry.
The crypto industry suffered a loss of $336.3 million in the first quarter of this year due to hacking, which is 23.1% lower compared to the previous year, as per the latest report by Immunefi. Over the first three months of 2024, crypto projects lost more than $321 million in 46 hacking incidents and 15 cases of fraud.
Decentralized finance (defi) remains the primary target for hackers, accounting for 100% of the losses in the crypto industry. Mitchell Amador, CEO of Immunefi, explained that defi is often compromised due to the frequent compromise of private keys.
The number of hacker attacks in the first quarter of 2024 decreased by 17.5% compared to the same period in 2023. Ethereum (ETH) network was the most exploited, with 33 incidents reported, followed by the BNB Chain (BNB) blockchain with 14 attacks. Combined, Ethereum and BNB Chain accounted for more than 73% of the funds lost.
The two largest hacks occurred on the Orbit Bridge and the Munchables web3 gaming platform. Hackers stole over $81 million from Orbit and nearly $63 million from Munchables. PlayDapp and FixedFloat were also targeted, losing $32 million and $26 million, respectively.
Hacking remains the most popular method of crypto theft, representing 95.6% of total losses, while fraud accounts for only 4.4%. Analysts have noted a 22.4% decrease in fraud cases over the past year.
In 2023, hackers managed to extract $19 million from crypto projects, compared to $14 million this year. However, only 22% of the stolen funds, amounting to $73 million, were recovered in 2024.
Interestingly, the centralized finance (cefi) sector did not suffer any losses in the first three months of 2024, whereas it lost $1.8 million during the same period last year.
