The cryptocurrency industry will face persistent hacking and scam challenges in 2024, according to the latest report from blockchain security company Immunefi.
The report highlights that although exploit losses have decreased each month, the industry has lost more than $1.4 billion to 179 hacks and scams this year.
In October alone, losses totaled $55.1 million, a significant reduction from the $126.9 million lost in September, a drop of 56.6%. Nonetheless, Immunefi data highlights the sector’s continued vulnerability, as cumulative losses remain substantial.
The October losses are particularly notable because of their concentration on several incidents. Seven specific exploits contributed to the month’s losses, with two major DeFi protocol hacks – Radiant Capital, which lost $50 million, and Tapioca DAO, which lost $4.4 million – accounting for the bulk of the financial damage .
Crypto Sees Changes in Security Strategies
Immunefi’s Head of Security, Gonçalo Magalhães, commented on the evolution of security in the sector, observing that “projects are increasingly adopting robust security measures”, which include “more in-depth audits, improved design of smart contracts and the introduction of bug bounty programs.”
He noted a notable improvement in the maturity of security practices in the sector compared to two or three years ago. These measures above appear to help reduce the risk of exploitation, although hackers continue to exploit weak points where possible.
The BNB chain became the most targeted network in October, accounting for 50% of attacks. Meanwhile, Ethereum and Arbitrum collectively accounted for the remaining 50%, with each chain witnessing 25% of the month’s incidents.
This distribution of hacks across these chains highlights how certain networks continue to attract higher targeting frequencies, with Ethereum-based ecosystems often at the forefront.
This persistent targeting suggests that while security measures have improved, high-value assets and DeFi ecosystems remain attractive to bad actors.
Outlook 2024: a sector on its guard
As the year progresses, the crypto industry’s response to hacking attempts and fraud shows a mixed but hopeful trend. Immunefi’s report notes that overall losses in 2024 now show a slight decrease of 1% compared to the previous year, indicating a gradual improvement.
This trend and the reduction in monthly operating levels suggest that enhanced security measures are coming into effect. In addition to adopting more “robust” security strategies, projects are increasingly focusing on comprehensive audits and deploying decentralized assurance mechanisms to offset risks.
However, large-scale incidents like those affecting Radiant Capital and Tapioca DAO reveal significant vulnerabilities. For example, even though centralized finance (CeFi) did not experience any incidents in October, DeFi remains a prime target.
However, the lack of CeFi losses this month may indicate that attackers are focusing more on decentralized protocols, taking advantage of their often rapid tactical development cycles.
Featured image created with DALL-E, chart from TradingView
