Originally published on: September 26, 2024
The third quarter of 2024 saw a remarkable 40% decrease in losses from crypto hacks and scams compared to the previous year, with total losses amounting to $413 million, as reported by blockchain security platform Immunefi on Sept. 26.
In contrast to the $685 million in losses in the same quarter last year, the significant drop in losses in Q3 2024 is definitely a positive development. Moreover, compared to the second quarter of the current year, losses dropped by approximately 28%.
Though the quarter did witness a few notable crypto hacks and exploits, with WazirX crypto exchange leading the pack with a $235 million loss and the BingX hack following closely with $52 million in losses, accounting for more than two-thirds of the total losses in the quarter.
Despite some high-profile incidents, losses from rug pulls and other types of fraud only amounted to $3 million across three incidents, representing a mere 0.8% of the total losses for the quarter. Overall, losses from scams saw a drastic 86.4% decrease compared to the same period last year.
Exploits in decentralized finance (DeFi) also saw a considerable decline, with $103 million in losses across 31 incidents, marking a significant 79.2% decrease from the $500 million losses in Q3 2023.
While most sectors saw a decline in losses, the potential for significant losses at centralized exchanges remains a concern in the crypto space. Immunefi founder, Mitchell Amadour, highlighted key management as a major issue that needs to be addressed to reduce such losses.
The downward trend in losses prior to Q2 2024 had shown promise, but a spike in private key hacks at centralized exchanges led to a worrying 115% increase in losses in that quarter. With advancements in wallet software to identify scam addresses and warn users against them, the crypto community continues to work towards greater security measures.
Stay updated on the latest in crypto security at Crypto-Sec Magazine, covering news on incidents like the Bankroll Network DeFi hack and the $50 million phisher moving crypto on CoW.
