The first half of 2024 has been a rollercoaster for the cryptocurrency world, marked by a significant rise in major hacks. According to the H1 annual report by PeckShield, over 200 significant incidents were reported, resulting in $1.56 billion in losses. Alarmingly, only $319 million could be recovered despite active recovery efforts. This represents a staggering 293% increase from the same period in 2023 when losses stood at $480 million.
Read on to find out how much has been stolen, what DeFi platforms are most at risk, and how you can protect yourself.
Decentralized finance (DeFi) protocols remain the most attractive targets for hackers, accounting for $81 million and 59% of the total stolen crypto assets. These decentralized applications (DApps) are enticing to hackers because their smart contract code is often complex and riddled with vulnerabilities.
Flash loan attacks, which exploit unsecured borrowing, accounted for 24% of the hacks. The remaining 76% involved other sophisticated techniques to breach security measures.
More than 20 public blockchains were targeted, with Ethereum, Bitcoin, and XRP chains suffering the most. Ethereum and BNB Chain were the most popular among hackers, each accounting for 31.3% of the total number of hacks. Arbitrum followed closely with $12.5% in losses.
1. DMM Bitcoin
Loss Amount: $305 million
The largest hack between January and June 2024 targeted DMM Bitcoin, one of the largest exchanges. Hackers executed a sophisticated phishing attack, tricking employees into disclosing critical access codes, allowing them to penetrate the system and steal users’ funds.
2. PlayDapp
Loss Amount: $290 million
Cryptocurrency gaming platform PlayDapp was among those suffering from a flash loan attack. The sabotagers managed to manipulate token prices with the help of the platform’s smart contracts and siphon a large amount of money from the liquidity pools.
3. Gala Games
Loss Amount: $290 million
A bunch of hackers erratically breached Gala Games through social engineering and further actions on smart contracts targeted at the young but rapidly growing gaming and NFT marketplace, Gala Games. Criminals were able to breach into the restricted hot wallet, which led them to steal a plethora of valuable NFTs and tokens.
4. Chris Larsen
Loss Amount: $112.5 million
Chris Larsen, co-founder of Ripple, suffered a major personal security breach. Poor management of private keys led to substantial losses from his crypto holdings.
5. BTCturk
Loss Amount: $100.25 million
BTCturk, a Turkish exchange, was hit by a serious security breach that bypassed multi-factor authentication. The attackers accessed hot wallets, withdrawing a significant sum from clients’ balances.
As the cryptocurrency market continues to grow, so do the threats posed by hackers. Introducing heightened security measures, constant auditing of smart contracts, and increasing personal security protocols are crucial steps to counter these evolving threats.
Feeling nervous about DeFi hacks? Read Now: Protect Your Digital Assets: Analysis of Q2 2024 Crypto Thefts and Scams
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