Encouraging News: Cryptocurrency Losses Due to Hacks and Fraud Decrease by 20% in 2024
A recent report by Immunefi reveals a significant decrease in losses resulting from hacks and fraud in the cryptocurrency market. Compared to the same period in 2023, losses have decreased by 20%, from $595 million to $473 million. This positive trend continues in May 2024, with losses totaling $52.4 million, a 12% decrease from the previous year and a 28% decrease from the previous month.
The majority of losses in May were attributed to two projects: Gala Games, a cryptocurrency gaming platform, and SonneFinance, a decentralized lending protocol. Decentralized finance (DeFi) remained the primary target for exploits, while centralized finance (CeFi) experienced no significant attacks.
Immunefi's report highlights that hacks were the leading cause of losses, accounting for $50.6 million across 14 incidents. Fraud events resulted in losses of $1.75 million across seven incidents. Ethereum and BNB Chain were the most targeted blockchain networks, accounting for 62% of total losses.
While the decrease in losses is a positive development, the report serves as a reminder of the ongoing need for vigilance in the cryptocurrency market. As the market continues to evolve, it's essential for participants to remain informed and take necessary precautions to ensure their assets' safety.