The Hacken Web 3 Report 2024 reveals some interesting insights into the state of decentralized finance (DeFi) and centralized finance (CeFi) protocols in the crypto space. According to the report, DeFi protocols have managed to reduce their losses by 40% year-on-year, while CeFi protocols have seen their losses more than double in the same period. In 2024, DeFi losses represented 20.4% of total crypto hack losses, compared to 30% for CeFi.
Despite the overall improvement in DeFi losses, some protocols still fell victim to hacker exploits. One notable example is Radiant Capital, which lost over $55 million after a hacker gained access to their system and manipulated legitimate transaction approvals. This highlights the ongoing challenges faced by DeFi platforms in securing their systems against malicious actors.
On the other hand, CeFi losses saw a significant increase in 2024, with losses soaring to $694 million from $339 million in 2023. The DMM Bitcoin hack in May 2024 was particularly noteworthy, as it resulted in losses of approximately $305 million. Another major CeFi hack, the WazirX hack, accounted for nearly $240 million in losses and involved an attacker breaching the system and draining funds from the wallet.
Access control vulnerabilities proved to be a major issue in the crypto space in 2024, accounting for 75% of all crypto hack losses and over $1.7 billion in losses. Both DeFi and CeFi protocols were affected by these exploits, highlighting the need for stronger access control measures in the industry. Phishing scams also played a significant role in draining funds from unsuspecting investors, with over $600 million lost in 2024 to scams involving celebrity endorsements and presale fraud.
The report underscores the importance of implementing robust security measures in the crypto and metaverse spaces to protect against hacks and breaches. Weaknesses in private key management systems, poor security protocols, single-signature vulnerabilities, and insecure private key backups were among the factors contributing to ongoing security challenges in the industry. By addressing these vulnerabilities and enhancing security practices, platforms can better safeguard investor funds and minimize the risk of future breaches.
In conclusion, the Hacken Web 3 Report 2024 offers valuable insights into the evolving landscape of decentralized and centralized finance protocols in the crypto space. While DeFi protocols have made progress in reducing losses, CeFi platforms have experienced a significant increase in breaches and losses. Access control vulnerabilities, phishing scams, and weaknesses in security protocols continue to pose challenges for the industry, underscoring the need for enhanced security measures and robust defenses against malicious actors. By prioritizing security and implementing best practices, platforms can better protect investor funds and uphold the integrity of the crypto ecosystem.
