The crypto market has demonstrated remarkable resilience in the face of challenges, achieving an unprecedented recovery rate of 77% for stolen funds during the second quarter of 2024. According to Hacken’s Web3 Security Report Q2 2024, a total of $347.4 million of the stolen cryptocurrency funds were successfully recovered or frozen out of the $512.9 million lost.
The report highlighted the positive trend of funds recovered amid the concerning rate of theft in the crypto sector for the second consecutive quarter. The number of hacks in Q2 2024 decreased from 67 to 41 compared to the previous quarter. Despite this improvement, financial losses remained a critical issue, with losses in Q2 amounting to $512.9 million, almost matching the total losses for the entire year of 2023.
Access control-related breaches were the most common type of attack in Q2, resulting in the highest financial losses. The DMM Bitcoin incident alone led to a substantial loss of $305 million, underscoring the significant impact of compromised security in centralized finance platforms. Other notable attack methods included flash loan attacks causing $84.36 million in losses, and rug pulls resulting in $23.1 million in losses.
Although CeFi platforms are perceived to be secure, they experienced significant breaches like the Rain Exchange hack due to a failure in safeguarding private keys, resulting in a loss of $14.8 million. Token projects faced heightened vulnerabilities due to rapid growth and the complexity of smart contracts, often overlooking security audits to prioritize quick launches.
Furthermore, the increasing sophistication of social engineering tactics has made it easier for attackers to exploit vulnerabilities, gaining unauthorized access to critical administrative accounts and sensitive data. On a different note, cryptocurrency scams, particularly on platform X, have thrived, with a considerable number of scams attributed to scammers on the platform.
Scam Sniffer, an anti-scam web3 company on X, revealed that approximately $50 million is lost monthly due to account impersonation on X.com. This issue predates Elon Musk’s involvement in the platform, but the controversy surrounding the new owner’s paid verification service may contribute to the public’s susceptibility to impersonation scams.
The service enables anyone with a smartphone to register and receive verification, potentially complicating the distinction between genuine and fraudulent accounts. Recently, Binance co-founder Yi He raised concerns about the rising number of cryptocurrency scams on X and questioned Musk’s willingness to address the issue.
Similarly, the renowned rapper 50 Cent, also known as Curtis Jackson, fell victim to a hacking incident with his X account being exploited to promote a fraudulent meme coin based on the Solana blockchain. For updates, follow us on Google News.
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Original article’s title: Crypto Market Recovers Over Half of Stolen Funds in Q2, With Record Recovery Rate of 77%
