The cryptocurrency ecosystem suffered significant losses in the second quarter of 2024, totaling $572.7 million due to hacks and frauds, according to Immunefi’s quarterly breakdown report. This marked a 112% increase compared to the same period a year ago. Year-to-date losses reached $920.9 million, a 24% increase from the previous year. May and June were particularly rough months, with May alone accounting for $358.5 million in losses.
The report pointed out the vulnerability of the sector, especially within centralized finance (CeFi) platforms, which accounted for 70% of the total losses. The industry experienced 53 hacks and 19 rug pulls during the second quarter, with the two most significant incidents contributing over $400 million in losses. Hacks remained the primary cause of losses, totaling $564.2 million across 53 incidents, a 155% increase from the previous year.
Centralized finance (CeFi) platforms incurred $401.4 million in losses across five incidents, representing a 984% increase from the same period last year. On the other hand, decentralized finance (DeFi) platforms saw a 25% decrease in losses, totaling $171.3 million across 62 incidents. Ethereum and BNB Chain were the most targeted blockchain networks in the second quarter, with Ethereum experiencing 34 incidents and BNB Chain facing 18 incidents.
Recovery efforts managed to retrieve $26.7 million of stolen funds in four specific instances, accounting for 5% of the total losses. This was a slight improvement from the 3.9% recovery rate in the second quarter of 2023. The increase in losses due to hacks and frauds underscores the ongoing security challenges in the crypto industry, emphasizing the need for enhanced security measures and vigilance across both DeFi and CeFi platforms to protect user funds and maintain trust in the ecosystem.
In conclusion, the cryptocurrency ecosystem has experienced significant losses in the second quarter of 2024, with hacks and frauds totaling $572.7 million. The vulnerability of the sector, especially within centralized finance (CeFi) platforms, was highlighted in the report, with 70% of the losses attributed to them. Hacks remained the primary cause of losses, stealing $564.2 million in total. Recovery efforts managed to retrieve $26.7 million of stolen funds, indicating a slight improvement from previous years. Enhanced security measures and vigilance are necessary to protect user funds and maintain trust in the crypto ecosystem.
