Crypto Industry Lost $1.49B to Hacks and Fraud in 2024, a 17% Decline YOY: Immunefi

The crypto industry witnessed losses totaling $1.49 billion in 2024 due to hacks and fraud, marking a 17% decrease from 2023.

According to a report by blockchain security platform Immunefi, hacks were overwhelmingly the primary cause, accounting for $1.47 billion or 98.1% of the total losses across 192 incidents.

Fraud, including rug pulls and scams, represented just 1.9% of the losses at $28 million, though this category saw a 72% increase year-on-year.

Number of Successful Attacks Fell by 27%

The decline in total crypto losses reflects improved security measures, as the number of successful attacks also fell by 27.5%, from 320 in 2023 to 232 in 2024.

The report identified two high-profile incidents as the year’s largest losses.

Japan’s DMM Bitcoin exchange suffered a $305 million private key breach in May, while WazirX, India’s top crypto exchange, lost $235 million in July after hackers compromised its Ethereum-based multisig wallet.

Together, these two events accounted for 36% of the total losses.

🌟In 2024, hackers stole $2.2 billion from cryptocurrencies, a 21% increase from last year. Big hits include $305M from Japan's DMM Bitcoin and $235M from India’s WazirX. North Korea stole $1.3B to avoid sanctions. Most attacks targeted big platforms.#CryptoTips #TradeSmart… pic.twitter.com/Wo4ZhLOv0s

— Fiona K (@Fiona_Kzh) December 20, 2024

Decentralized finance (DeFi) protocols remained prime targets, representing 51.4% of the losses, while centralized finance (CeFi) platforms accounted for 48.6%.

Notably, CeFi losses surged by 77.5% year-on-year, reaching $726 million.

Ethereum and Binance Smart Chain were the most attacked blockchains, with Ethereum facing 104 incidents that led to 44% of total chain losses.

The report also highlighted the significant role of North Korean-linked hacking groups, responsible for $285 million in losses through sophisticated attacks on platforms like WazirX and Radiant Capital.

Their techniques ranged from social engineering to malware-laced PDFs targeting developers.

Q2 2024 Was Most Damaging

On a quarterly basis, Q2 2024 was the most damaging, with losses reaching $572.6 million, driven by major incidents at DMM Bitcoin and BtcTurk.

Q4 recorded the least losses at $150.5 million, reflecting improved resilience during the year.

Despite the staggering numbers, $115.6 million was recovered in 14 incidents, representing 7.7% of the stolen funds.

For instance, Munchables successfully retrieved $62.8 million after the developer disclosed the compromised private keys, while Thala recovered its $25.5 million loss through law enforcement intervention.

“Despite progress in making crypto safer, particularly in terms of hacks per dollar, the sector still faces significant challenges,” Mitchell Amador, CEO of Immunefi, commented.

“The stakes are high, and we will also witness an unprecedented surge in security advancements, with AI-powered tools and decentralized security solutions becoming essential in the fight to safeguard the ecosystem.”

Just recently, New Zealand’s Financial Markets Authority (FMA) issued a warning about an increasing wave of crypto scams targeting social media users.

The watchdog said that the fraudsters operate primarily through YouTube channels and messaging platforms like WhatsApp and Telegram, where they lure unsuspecting users with promises of lucrative investment opportunities.

In a separate incident, Nigeria’s Economic and Financial Crimes Commission (EFCC) has arrested 792 individuals in connection with an alleged large-scale crypto romance scam.

The arrests took place on December 10 at a building in Lagos, Nigeria’s largest city, suspected to be a major hub for fraudulent activities.