TL;DR
- Losses from hacks and scams in the crypto industry were $413 million in the third quarter of 2024, representing a 40% decrease.
- The most notable attacks were the WazirX hack, which resulted in losses of $235 million, and the BingX hack, with losses of $52 million.
- Despite the reduction in losses, experts warn that private key management remains a critical issue that requires attention.
Losses from hacks and scams in the crypto industry have significantly decreased in the third quarter of 2024, reaching $413 million.
This represents a 40% drop compared to the same period last year, when losses were $685 million. A positive trend in the security of the crypto ecosystem appears to be consolidating. However, despite the reduction, the quarter witnessed incidents that highlight the still-persistent vulnerabilities in the industry.
Two Platforms Accounted for 69% of the Losses
The report prepared by the blockchain security platform Immunefi highlights that hacks in the centralized sector continue to be a major concern. The most notable attack of the quarter was the one that affected WazirX, one of the most well-known crypto exchanges, resulting in a loss of $235 million. Following this was the BingX hack, which caused losses of $52 million. Together, these two incidents accounted for more than 69% of the total losses recorded during the quarter.
In terms of fraud, so-called “rug pulls” and other types of scams represented a minimal fraction of the total losses. Only $3 million was lost across three incidents, amounting to 0.8% of the total. Losses related to scams decreased dramatically by 86.4% compared to the same quarter last year, indicating progress in identifying and preventing these crimes.
Losses from Hacks in the DeFi Sector Decreased by 79%
The DeFi sector also saw a reduction in losses. $103 million was lost in 31 incidents, marking a decrease of 79.2% compared to the third quarter of 2023. It is evident that the security measures implemented are having a positive effect.
Despite these improvements, experts, including Mitchell Amadour, founder of Immunefi, warn that private key management remains a critical issue that needs attention. Inadequate security in managing these keys can result in significant losses, even if the frequency of attacks decreases. It is extremely necessary to implement rigorous key management policies and emergency plans on platforms, especially in an environment where incidents can result in the theft of hundreds of millions of dollars in digital assets
