Immunefi Reports Half a Billion in Losses to Crypto Hacks and Fraud in Q2

Immunefi Reports Crypto Hacks and Fraud Losses of Half a Billion Dollars in Q2

Immunefi Reports– In Q2, the crypto bug bounty platform Immunefi reported a staggering $509 million lost to hacks and fraud, marking a 91% increase from the same period last year.

The report highlighted May 2024 as particularly severe, with record losses of $107 million across the industry. However, June saw a decrease in losses to $78 million spread over 12 different incidents, reflecting a 27% drop from June 2023’s $107 million.

Among the hardest hit was the Japanese centralized exchange DMM Bitcoin, which suffered a massive $305 million loss to hackers. The exchange has since implemented measures to reimburse affected customers.

Other platforms, including BtcTurk, Hedgey, Lykke, Gala Games, and SonneFinance, collectively reported losses totaling $164.2 million due to various exploits.

According to the Immunefi report, centralized crypto financial institutions were the primary targets, accounting for two-thirds of successful attacks.

Grace Dees, a cybersecurity business analyst at Resonance Security, explained to Decrypt that hackers frequently target centralized entities because they pose higher susceptibility to hacks. This vulnerability stems from their substantial asset pools and centralized storage.

CEFIs often manage larger asset pools compared to DeFi platforms, making them attractive targets for hackers seeking to maximize gains from a single attack, she noted.

Centralized Institutions Bear Brunt as Cyber Attacks Surge, Ethereum Tops Vulnerability List

Dees further highlighted that centralized entities attract hackers due to their use of centralized repositories, wallets, private key management, and security protocols.

When questioned about the reasons behind Ethereum being the most targeted, Jonah Michaels, Communications Lead at Immunefi, pointed out that Ethereum serves as the central hub for DeFi activities and holds the largest amount of funds within its ecosystem.

As a result, it becomes the prime focus for hackers who exploit numerous protocols on a large scale for substantial profits. Moreover, Ethereum’s integration with major privacy chains and technologies provides hackers with avenues to swiftly launder stolen funds.

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