Decentralized finance (DeFi) hacking has evolved into a full-time job for professional attackers, with the founder of ImmuneFi calling it an “infinitely sustainable and viable business.” However, despite the increase in DeFi hacks, the crypto space is becoming safer. ImmuneFi’s Q3 2024 report showed a 38% decrease in losses from crypto hacks, totaling just under $424 million.
In the year to date, crypto losses from hacks have reached just over a billion dollars, significantly lower than previous years. This is particularly impressive considering the increasing value of the industry and on-chain assets. While hacking incidents are on the rise, large-scale cases are becoming less common. The sophistication of DeFi hacks was demonstrated in the October 2024 Radiant Capital hack, where North Korean hackers compromised private keys using a man-in-the-middle attack.
To strengthen the security of the Ethereum blockchain, ImmuneFi is hosting the Ethereum Protocol Attackathon, with a $1.5 million reward pool. This code contest aims to identify mission-critical bugs and vulnerabilities in the Ethereum code base. The contest marks a new approach to enhancing blockchain security and is expected to become a regular event to secure each major iteration of the blockchain.
The incoming Trump administration’s crypto-friendly stance is expected to benefit the blockchain security sector. Trump’s proposed U.S. strategic Bitcoin reserve is putting pressure on European ministries to adopt crypto more aggressively. This shift towards crypto-friendliness is anticipated to drive industry growth and increase security activity. ImmuneFi plans to expand into automated technologies, including the development of a significant AI agent to coordinate proactive security measures.
Looking ahead, ImmuneFi is preparing for the future of bug bounties, which are expected to evolve in the coming years. The use of AI technology and automation will revolutionize bug bounty programs, making them more effective and efficient. These advancements are set to enhance the overall security of the crypto industry and prepare it for future challenges. With the right measures in place, the crypto space can continue to grow and thrive in a secure environment.
