CeFi Takes the Lead Over DeFi, Accounting for 70% of Total Crypto Losses in Q2, with $572 Million Stolen Overall
The second quarter of this year witnessed a significant shift in the crypto space. Centralized finance (CeFi) emerged as the primary target of successful exploits, accounting for 70% of the total losses, according to a recent report by Immunefi, a major bug bounty and security services platform.
In contrast, decentralized finance (DeFi) accounted for 30% of the total losses. This marks a significant change from previous reports, which showed that CeFi suffered no losses while DeFi took the entire hit.
In Q2 of this year, CeFi suffered a total loss of $401,400,000 across 5 incidents. This represents a staggering 984% increase compared to the $37,000,000 loss in Q2 of 2023.
On the other hand, DeFi experienced $171,288,861 in total losses across 62 incidents, marking a 25% decrease compared to Q2 of 2023 when DeFi losses amounted to $228,481,519.
Mitchell Amador, Founder and CEO at Immunefi, emphasized the devastating impact of infrastructure compromises in the crypto industry, stating that a single compromise can lead to millions in damages. This was evident in Q2, where losses surged primarily due to hacks targeting CeFi infrastructure, surpassing DeFi despite fewer hacks in that sector. He emphasized the importance of robust measures to safeguard the entire ecosystem.
Ethereum and BNB Chain continued to account for the majority of chain losses, totaling 71%. Ethereum, with 34 incidents (46.6% of the total losses), surpassed BNB Chain with 18 incidents (24.7%), making it the most targeted chain.
In total, the Web3 ecosystem lost $572,688,861 in Q2 of 2024, with hackers stealing $564,238,811 across 53 incidents and fraudsters taking $8,450,050 across 19 specific incidents. Two projects suffered the most significant losses, representing 62.8% ($360 million) of the total losses: DMM Bitcoin, a Japanese crypto exchange, lost $305,000,000 in an attack, and BtcTurk, a Turkish crypto exchange, lost $55,000,000.
The total loss in Q2 of 2024 represents a 112% increase compared to Q2 of 2023, when hackers and fraudsters stole $265,481,519.
Hacks remained the primary cause of losses, accounting for 98.5% ($564,238,811 across 53 incidents), while fraud accounted for 1.5% ($8,450,050 across 19 incidents). However, $28,736,000 was recovered in four situations, representing 5% of the total losses in Q2.
Overall, the Web3 ecosystem has experienced $920,940,078 in losses year-to-date (YTD) across 135 incidents, with the majority of losses occurring in May. The biggest loss to hacks occurred in June, with $138,139,000 stolen. March was the record month for frauds this year, with $6,541,000 in stolen funds.
Comparing Q2 of 2023 to Q2 of 2024, hack-related losses increased by 155%, while fraud-related losses decreased by 81%. In the same period, DeFi losses dropped by 25%, while CeFi losses rose by 984%.
Immunefi currently offers over $163 million in available bounty rewards and has paid out over $100 million in total bounties, saving over $25 billion in user funds.
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