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Evelyn Soto
Evelyn Soto

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Crypto Losses From Hacks and Rug Pulls Doubled to $572M in Q2 2024

According to a report by crypto security platform Immunefi, losses from hacks and rug pulls in the crypto sector more than doubled in Q2 2024 compared to the previous quarter, reaching a staggering $572 million. This marks a 112% increase from Q2 2023, when losses stood at $265 million.

The report highlights that the majority of the losses, a whopping 70%, occurred in the Centralized Finance (CeFi) sector, while the Decentralized Finance (DeFi) market accounted for the remaining 30%. The Ethereum and BNB Chain blockchains were the most frequently targeted, with 34 and 18 incidents respectively, followed by Arbitrum with 4 incidents.

The report also reveals that May 2024 was the worst month, with losses reaching $358 million, nearly two-thirds of the total for the quarter. The largest single attack was on the Japanese crypto trading platform DMM Bitcoin, which lost $305 million and accounted for 62.8% of the overall losses.

Other notable incidents include the $55 million hack of BtcTurk, a Turkish crypto exchange, and the $44 million exploit of Hedgey, a DeFi protocol. The report also mentions the $23.6 million loss suffered by Gala Games, a blockchain gaming platform.

In a related development, Alex Lab, a prominent Bitcoin Layer 2 developer, recently suggested that a $4 million hack it suffered in May might be linked to the notorious North Korean hacking group Lazarus. The attack targeted Alex Lab's BNB Smart Chain bridge, with the hackers stealing around 13.7 million Stacks (STX) coins and conducting over 11,800 transactions before transferring the stolen assets through various DeFi platforms.

The significant increase in losses highlights the growing sophistication and frequency of attacks targeting the crypto industry. As the sector continues to evolve and attract more mainstream adoption, it is crucial for projects and platforms to prioritize security measures and work with security experts to mitigate the risks of hacks and rug pulls.

Immunefi's report serves as a wake-up call for the crypto community to take proactive steps in enhancing security protocols, implementing robust risk management strategies, and fostering a culture of transparency and accountability. By working together to address these challenges, the industry can build a more secure and resilient ecosystem that can withstand the growing threat of cyber attacks and financial fraud.

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Chris

losses hit $572M in Q2 2024, with CeFi taking the biggest hit. How can the industry step up its security game to tackle these threats?