In Q1 of 2024, the cryptocurrency industry experienced a dwindle in losses attributed to hacking and scams, according to a recent report from Immunefi, a blockchain security firm. Compared to 2023, the total losses were approximately $336.3 million, marking a 23% decline from the previous year’s $437.5 million.
The report outlined a total of 46 hacking incidents and 15 cases of fraudulent activities during this period. Notably, all of the exploits identified by Immunefi in Q1 targeted decentralized finance (DeFi) platforms, contrasting with zero incidents in centralized finance platforms.
DeFi platforms, with nearly $100 billion in total value locked in Web3 protocols, remain prime targets for hackers due to their susceptibility to private key breaches. One significant attack, amounting to $81.7 million, targeted the cross-chain bridge protocol Orbit Bridge on New Year’s Eve, contributing to the bulk of the losses.
January recorded the highest monthly losses in Q1, totaling $133 million. Mitchell Amador, CEO of Immunefi, emphasized the urgent need for improved security measures across code and protocol infrastructure in DeFi platforms to mitigate the risks associated with private key breaches.
The second most significant attack targeted Blast-based NFT game Munchables, resulting in a $62 million exploit. Fortunately, within 24 hours, the funds were recovered because the hacker relinquished control of the private keys to the wallet holding Munchables’ assets.
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