Crypto Hacks and Frauds Surge in Q2 2024

A recent report by Immunefi highlights a significant rise in crypto hacks and fraudulent activities during the second quarter of 2024, with total losses reaching $572.7 million—a 112% increase compared to the same period in 2023. Hacks were responsible for 98.5% of these losses, with centralized finance (CeFi) platforms being the primary targets. Ethereum emerged as the most targeted blockchain, closely followed by the BNB Chain. Notably, two major hacks, including a $305 million theft from Japan's DMM Bitcoin and a $55 million loss from Turkey's BtcTurk, accounted for 62.8% of the total losses.

Mitchell Amador, Founder and CEO of Immunefi, stressed the critical importance of robust security measures, noting that infrastructure compromises can lead to massive damages. Interestingly, despite the overall increase in losses, fraud-related losses decreased by 81% compared to Q2 2023, and approximately 5% of stolen funds were recovered. The report also revealed that Asian exchanges were particularly affected, including India's WazirX, which lost $230 million to a hack. The exchange is actively seeking ways to recover the funds and restore withdrawals.