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Digital asset platforms lose $2.1B in 2024 due to hacks

Digital asset platforms lose $2.1B in 2024 due to hacks

GrafaGrafa2024/10/01 05:50
By:Liezl Gambe

A new report by cybersecurity firm Cyvers reveals that digital asset platforms have suffered $2.114 billion in losses during the first nine months of 2024, marking an all-time high and surpassing the $1.69 billion lost in all of 2023.

The bulk of these losses stemmed from hacks and security breaches, emphasising the urgent need for stronger security protocols across both centralised and decentralised platforms.

Centralised exchanges (CEX) have been particularly vulnerable, seeing a staggering 984% increase in hacks year-over-year.

In the second quarter of 2024 alone, five major incidents resulted in a total loss of $401 million.

One of the largest breaches involved Japan-based DMM Bitcoin exchange, which suffered a loss of $305 million.

Additionally, the Turkish exchange Btcturk faced a $55 million loss, further contributing to the rise in security-related incidents.

While decentralised finance (DeFi) platforms saw a 25% reduction in losses compared to the same period in 2023, they still reported significant damage.

In Q2 2024, DeFi platforms lost $171.3 million across 62 incidents, with most of the activity occurring on the Ethereum (CRYPTO:ETH) and BNB Chain networks.

Out of the 131 incidents recorded by Cyvers during the first three quarters of 2024, 79 were linked to smart contract exploits, while the remainder were attributed to access control violations.

The report highlights that the increasing frequency and severity of these security breaches call for immediate improvements in the sector's defenses.

According to Cyvers, implementing more robust security measures and enhancing regulatory oversight are critical steps to prevent future losses and protect the growing digital asset ecosystem.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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