The cryptocurrency industry observed a notable decline in losses attributed to hacking and scams during the first quarter of 2024 compared to the same period in 2023, as outlined in a report by blockchain security firm Immunefi released on March 28.
In Q1 2024, the total losses due to hacking and fraudulent activities amounted to approximately $336.3 million, marking a significant decrease from $437.5 million recorded in the corresponding quarter of 2023.
The report highlights 46 hacking incidents and 15 cases of fraudulent activities identified during the first quarter of 2024.
With nearly $100 billion locked in Web3 protocols, decentralized finance (DeFi) platforms remain the primary focus for hackers, constituting all of the exploits detected by Immunefi in Q1, contrasting with zero incidents in centralized finance platforms.
Two prominent projects accounted for a significant portion of the losses, totaling $144.5 million, equivalent to 43% of the overall amount. Notably, the largest attack, amounting to $81.7 million, targeted the cross-chain bridge protocol Orbit Bridge on New Year’s Eve.
January witnessed the highest losses during Q1, totaling $133 million, indicating a surge in hacking activities.
Mitchell Amador, CEO of Immunefi, underscored the vulnerability of DeFi platforms to private key breaches, stressing the urgent need for enhanced security measures across code and protocol infrastructure.
Despite the losses, $73.9 million (22%) of the stolen funds from seven exploits in Q1 were successfully retrieved.
Ethereum emerged as the most targeted blockchain, followed by the BNB Chain, collectively accounting for 73% of the total losses. Ethereum witnessed 33 incidents, constituting 51% of the losses, while the BNB Chain experienced 12 attacks, representing 22% of the exploited funds. Other incidents were reported across various networks including Arbitrum, Solana, Optimism, Bitcoin, Blast, Polygon, Conflux Network, and Base.
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