Crypto Projects Suffer $572M Losses in Q2 2024
In the second quarter of 2024, crypto projects lost $572 million to fraud and hacks, more than doubling the $265 million in the same period last year. The two biggest victims were centralized exchanges: Japan’s DMM Bitcoin ($305 million) and Turkey’s BtcTurk ($55 million).
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In the second quarter of 2024, crypto projects lost $572 million to fraud and hacks, more than doubling the $265 million in the same period last year. The two biggest victims were centralized exchanges: Japan’s DMM Bitcoin ($305 million) and Turkey’s BtcTurk ($55 million).
May was the most costly month with $358 million in losses, while April had the least at $72 million. Centralized services accounted for 70% of the total losses due to the two major breaches, with the remaining 30% stemming from DeFi platforms. A staggering 98.5% of the losses were due to hacks, with fraud making up only 1.5%.
This quarter highlights how infrastructure compromises can be the most devastating hacks in crypto, as a single compromise can lead to millions in damages
stated Mitchell Amador, CEO of Immunefi.
Ethereum and BNB Chain were targeted the most, with 34 and 18 hacks respectively. Other networks experienced significantly fewer incidents, with no more than four each. Sadly, only $26 million (5%) of the stolen funds were recovered, most of which were from Gala Games.
In May, Immunefi’s security report noted no hacks on centralized services and observed a positive trend. However, the report was published just days before the DMM Bitcoin hack, and a few weeks later, BtcTurk was also breached.
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