Crypto Theft Resurges: Losses to Hackers and Fraudsters Soar 112% in Q2

Cryptocurrency theft escalated dramatically in the second quarter, with losses from hacks and scams soaring by 112% to a staggering $572 million, the latest data revealed. This sharp increase followed a period of decline, highlighting a troubling resurgence in malicious activities targeting the crypto community, especially centralized exchanges.

Escalating Crypto Losses

Immunefi, an on-chain crowdsourced security platform, reported that the total losses amounted to $572,688,861, marking a significant rise from the $265,481,519 lost in the second quarter of last year. Centralized exchanges were the main victims, reversing the previous trend of declining losses.

The majority of the losses resulted from two major incidents. DMM Bitcoin, a Japanese crypto exchange, suffered a colossal $305 million loss, while Turkey’s largest cryptocurrency exchange, BtcTurk, reported a $55 million loss. These two events alone accounted for 62.8% of the total losses in Q2.

Hacks continued to dominate as the primary cause of crypto losses. Out of the total $572,688,861 lost, $564,238,811 resulted from hacks across 53 incidents, representing a 155% increase compared to the same period last year. Fraud, including scams and rug pulls, accounted for a smaller portion, with $8,450,050 lost across 19 incidents. This represents an 81% decrease from the same period of last year.

Centralized Finance (CeFi) platforms were the main targets, suffering 70% of the total losses, while Decentralized Finance (DeFi) platforms accounted for the remaining 30%. CeFi platforms experienced a staggering 984% increase in losses, with $401,400,000 lost across five incidents. In contrast, DeFi platforms saw a 25% decrease, with losses totaling $171,288,861 across 62 incidents.

Most Targeted Blockchains

Among the most targeted blockchains, Ethereum and BNB Chain were the most targeted blockchain networks in Q2 2024. Ethereum faced 34 incidents, representing 46.6% of the total losses, while BNB Chain witnessed 18 incidents, accounting for 24.7% of the losses. Other chains, such as Arbitrum, Polygon, Solana, and Fantom, experienced fewer attacks but still contributed to the overall losses.

Despite the high volume of losses, there were some successes in recovering stolen funds. Approximately $26,736,000, or 5% of the total losses, was recovered in Q2 2024, a slight improvement from the 3.9% recovery rate in Q2 2023. This indicates progress in tracking and reclaiming stolen assets, although challenges remain.

This article was written by Jared Kirui at www.financemagnates.com.

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