Digital Asset Platforms Lose a Record $2.1B in 2024, Mostly Due to Hacks

CN
5 hours ago

Cybersecurity Cyvers’ analysis shows that losses suffered by centralized and decentralized digital asset platforms in the first nine months of 2024 reached $2.114 billion, an all-time high. This surpasses the 2023 total of $1.69 billion. High-profile breaches and hacks, as highlighted in a recent Cyvers report, account for most of these losses, emphasizing the need for stronger security protocols.

Centralized exchanges (CEX), which previously had a smaller share of losses, saw a 984% year-over-year increase in hacks. The report identified five high-profile hacks and breaches in the second quarter alone.

“In Q2 2024, centralized exchanges experienced a notable surge in hacks, culminating in a total loss of approximately $401 million across five significant incidents. The most prominent of these was the DMM Bitcoin exchange breach, which resulted in a staggering $305 million loss, marking it as one of the year’s largest CEX breaches. Additionally, Btcturk, a Turkish exchange, was hit hard with a $55 million loss,” the report states.

Meanwhile, decentralized finance (defi) platforms experienced a 25% reduction in losses during Q2 2024 compared to Q2 2023. However, they still lost $171.3 million across 62 incidents in Q2 2024, primarily on Ethereum and BNB Chain.

Of the 131 incidents recorded in the first three quarters of 2024, Cyvers found 79 were smart contract exploits, and the rest were access control violations. The report concludes that the increasing number of incidents and losses highlights the need for proactive security measures and regulatory oversight to mitigate future risks and build a secure, resilient Web3 ecosystem.

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