The latest data shows that cryptocurrency theft has surged dramatically in the second quarter, with losses from hackers and scams skyrocketing by 112% to a staggering $572 million. This sharp increase comes after a period of decline, highlighting the malicious activities targeting the cryptocurrency community, particularly the alarming resurgence of centralized exchanges.
Cryptocurrency losses continue to escalate
According to the on-chain crowdsourced security platform Immunefi, the total losses amounted to $572,688,861, a significant increase from $265,481,519 in the second quarter of last year. Centralized exchanges were the primary victims, reversing the previous downward trend in losses.
The majority of the losses were caused by two major incidents. Japanese cryptocurrency exchange DMM Bitcoin suffered a massive loss of $305 million, while Turkey’s largest cryptocurrency exchange BtcTurk reported losses of $55 million. These two events alone accounted for 62.8% of the total losses in the second quarter.
Hackers continue to be the main cause of cryptocurrency losses. Out of the total losses of $572,688,861, $564,238,811 were attributed to 53 incidents of hacker attacks, marking a 155% increase compared to the same period last year. Fraud, including scams and rug pulls, accounted for a smaller proportion, resulting in losses of $8,450,050 in 19 incidents, an 81% decrease from the same period last year.
Centralized Finance (CeFi) platforms were the primary targets, accounting for 70% of the total losses, while decentralized finance (DeFi) accounted for the remaining 30%. The losses on CeFi platforms increased dramatically by 984%, resulting in $401,400,000 in losses across five incidents. In contrast, DeFi platforms decreased by 25%, with total losses of $171,288,861 in 62 incidents.
Most targeted blockchains
In the most targeted blockchains, Ethereum and BNB Chain were the most targeted blockchain networks in the second quarter of 2024. Ethereum faced 34 incidents, accounting for 46.6% of the total losses, while BNB Chain experienced 18 incidents, representing approximately 24.7% of the losses. Other chains, such as Arbitrum, Polygon, Solana, and Fantom, experienced fewer attacks but still resulted in overall losses.
Despite the significant losses, some success has been achieved in recovering stolen funds. Approximately $26,736,000 was recovered in the second quarter of 2024, accounting for 5% of the total losses, slightly improving from the 3.9% recovery rate in the second quarter of 2023. This indicates progress in tracking and recovering stolen assets, but challenges still persist.
