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crypto

Crypto Hack Losses Down In Q3 2024, Ethereum Still Most Targeted Blockchain: Report

Ash Tiwari
by Ash Tiwari
8 months ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Crypto hack and fraud-related losses decreased in Q3 2024, though Ethereum (ETH) remained the most targeted smart contract platform, according to a report by Immunefi.

Losses Primarily Due To Centralized Exchange Hacks

Immunefi has released its 2024 Q3 report, detailing the specifics of cryptocurrency-related hacks and losses during the quarter. The report notes two major exchange hacks, WazirX in July 2024, and BingX in September 2024, which collectively accounted for 69.5% of all funds lost in Q3 2024, totalling $287 million.

Notably, both WazirX and BingX are centralized exchanges, and lost funds to the tune of $235 million and $52 million, respectively. Centralized finance (CeFi) platforms were responsible for 74.8% of all successful exploits during the quarter, compared to decentralized finance (DeFi) platforms accounting for 25.2% of lost funds.

Related Reading: Crypto Hack: Indonesia’s Indodax Goes Offline After Suspected $22M Breach

It’s worth highlighting that although CeFi platforms witnessed only three incidents, they lost funds worth $309 million in Q3 2024. In contrast, DeFi platforms suffered $104 million in losses across 31 incidents during the same period. Compared to Q3 2023, DeFi losses have dropped by 79.2%, while CeFi losses are up 66.4%.

Commenting on the disparity between CeFi and DeFi incidents, Mitchell Amador, Founder and CEO at Immunefi remarked:

We’re seeing a higher number of incidents targeting DeFi, while CeFi experiences fewer incidents but often with more severe consequences, with hundreds of millions in stolen funds in a single exploit. In CeFi, the biggest infrastructural issue is private key management, which is essential to maintaining the self-custody of crypto assets but is not typically subject to security audits. It requires rigorous key management policies, practices, and emergency plans.

Further, the report sheds light on losses from both crypto hacks and frauds. Compared to Q3 2023, losses due to crypto hacks and frauds fell by 38.2% and 86.4%, respectively, in Q3 2024.

Ethereum Reigns Supreme As Hackers’ Favorite Blockchain

The report emphasizes that Ethereum and Binance Chain (BNB) were the two most targeted smart contract platforms in Q3 2024. While Ethereum suffered 15 incidents, representing 44.1% of the total losses across targeted networks, Binance Chain was responsible for 23.5% of the losses with 8 incidents. 

Coinbase’s Base chain ranked third with 5.9% of losses across different blockchains. Other targeted blockchains include Blast (BLAST), Solana (SOL), and Ethereum layer-2 scaling solution Arbitrum (ARB), with one incident each.

Related Reading: FBI Arrests Duo In $230 Million Crypto Fraud: Here’s How They Pulled The Scam Off

Attacks on layer-2 scaling solution-based protocols aren’t surprising, given how nascent they are and the limited security infrastructure they possess. Earlier this year, Emin Gün Sirer, co-founder of Avalanche (AVAX) blockchain warned about the red flags to watch out for in new layer-2 projects. 

The increasing frequency of hacks and frauds in the crypto space underscores the critical role of white-hat and gray-hat hackers, as seen in the recent incident involving the DeFi protocol Rho Markets. At press time, Bitcoin (BTC) was trading at $64,650, up 1.3% in the past 24 hours.

bitcoin
Bitcoin trades at $64,650 on the 1 day chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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