The year 2024 saw a decline in losses from large-scale exploits in the crypto space, with ImmuneFi reporting a 17% decrease in losses. According to ImmuneFi’s methodology, the total crypto losses for the year amounted to $1.49 billion, with December being the slowest month in terms of exploits, totaling $3.9 million to date. Q4 had the slowest losses for the year as well, signaling a positive trend despite the ongoing threat posed by hackers.
One of the biggest attacks of the year was the Orbit Bridge incident, which resulted in over $81.8 million in losses. This attack highlighted the vulnerability of bridges in the crypto ecosystem and served as a reminder that they are still potential targets for hackers. While the second half of the year saw a slowdown in hacks, ImmuneFi warns that attacks are becoming more sophisticated, even for smaller sums, and the threat from North Korean hackers and other exploiters still looms large.
Centralized exchanges faced the brunt of attacks in 2024, with over $726 million in losses compared to $408.9 million in 2023. The influx of new users and higher liquidity during the 2024 bull market attracted more hackers to centralized markets, aiming to exploit any remaining weaknesses. However, the rise of Web3 saw a shift in hacks and exploits towards DeFi and DEX platforms, accounting for 51.4% of all losses in the crypto space.
Ethereum remained a prime target for hackers due to the multitude of projects and smart contracts on the platform, making it easier for attackers to hide the origins of funds through swapping, mixers, or DeFi protocols. BNB Chain and Arbitrum also saw their fair share of attacks, with projects becoming more susceptible to exploit through the loss or exposure of private keys acquired through various nefarious means such as social engineering or malicious links.
Despite the prevalence of frauds and scams in the Web3 space, hacks still remain the most harmful form of attack, accounting for 98.1% of total losses in the crypto industry. However, scams and frauds managed to take away over $28 million based on distinct incidents, although this amount does not include other types of exploits such as sandwich attacks or MEV bot exploits. With more sophisticated users and smart wallets, frauds have decreased by 99.8% for Q4 compared to the same quarter in 2023.
In conclusion, the crypto space saw a decline in losses from large-scale exploits in 2024, signaling a positive trend in the industry. While attacks have become more sophisticated, the slowdown in hacks in the second half of the year is a promising development. However, the ongoing threat from hackers, particularly North Korean cyber criminals, remains a significant challenge for the crypto community. ImmuneFi’s report serves as a reminder for crypto users and platforms to remain vigilant and prioritize security measures to protect against potential attacks in the future.
