Crypto losses stemming from hacks, rug pulls up 112% YoY – Immunefi

The crypto ecosystem experienced significant losses in the second quarter of 2024, with a total of $572.7 million lost due to hacks and frauds — up 112% compared to the same period a year ago, according to Immunefi’s latest quarterly breakdown report.

Meanwhile, year-to-date (YTD) losses due to hacks and frauds have reached $920.9 million, a 24% increase compared to the previous year’s $702.9 million.

May and June saw particularly high losses, with May alone accounting for $358.5 million — the highest monthly total during the second quarter.

The report highlighted the susceptibility of the sector, particularly within centralized finance (CeFi) platforms, which accounted for the 70% of the losses.

Major Incidents

According to the report, the industry suffered 53 hacks and 19 rug pulls during the second quarter. The two most significant incidents contributed to a little over $400 million in losses — equating to 62.8% of the total losses for the quarter.

The largest loss was related to a hack on DMM Bitcoin, a Japanese crypto exchange, which resulted in a $305 million loss. Meanwhile, the second largest incident involved a cyberattack on Turkish crypto exchange BtcTurk that led to an additional $55 million in losses.

Hacks remained the primary cause of losses in the crypto sector, stealing $564.2 million across 53 incidents — a 155% annual increase.

In contrast, frauds, including rug pulls, resulted in $8.5 million in losses across 19 incidents, an 81% decrease from the previous year.

DeFi vs. CeFi

Centralized finance (CeFi) platforms incurred 70% of the total losses, amounting to $401.4 million across five incidents. This represents a 984% increase from the same period last year. Meanwhile, DeFi platforms saw a 25% decrease in losses, totaling $171.3 million across 62 incidents.

Ethereum and BNB Chain were the most targeted blockchain networks in the second quarter. Ethereum experienced 34 incidents, resulting in 46.6% of total losses across targeted chains, while BNB Chain faced 18 incidents, accounting for 24.7% of the losses.

Other chains such as Arbitrum, Blast, and Optimism also reported incidents to a lesser extent.

Recovery efforts resulted in $26.7 million of stolen funds being recovered in four specific instances, making up 5% of the total losses. This is a slight improvement compared to the 3.9% recovery rate in the second quarter of 2023.

The increase in losses due to hacks and frauds highlights ongoing security challenges in the crypto industry. Immunefi’s report highlighted the need for enhanced security measures and vigilance across both DeFi and CeFi platforms to protect user funds and maintain trust in the ecosystem.

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