Crypto Losses Drop 40% in Q3 2024, But Thefts Top $1.33B

Crypto losses from hacks and fraud dropped by 40% in Q3 2024 compared to last year. However, year-to-date thefts still total a staggering $1.33 billion.

This data from Immunefi highlights the ongoing threat posed by malicious actors in the crypto space, despite improvements in security measures.

As per the report, the third quarter of 2024 saw a notable decline in crypto losses resulting from hacks and fraud, with a 40% decrease compared to Q3 2023. However, the year-to-date figures tell a different story, revealing that a total of 1,333,934,577 has been lost due to hacks and fraud. This represents only a modest 3.9% compared with the previous period at $1,388,935,506.

Key insights into the current state of crypto security

Quarterly Losses: Q3 2024 witnessed a substantial decrease in total losses, with 412,994,499 stolen across the Web3 ecosystem. This decline can be attributed to enhanced security protocols and increased awareness among crypto users and platforms.
Monthly Distribution: July and September were the most active months for hackers, with loss volumes reaching $281,919,252 and $115,940,247, respectively. The spike in July can be partially attributed to a few high-profile hacks that targeted major crypto exchanges and DeFi platforms.
Attack Frequency: The number of individual successful attacks fell sharply by 54%, from 75 in Q3 2023 to 34 in Q3 2024. This reduction suggests that improved security measures are effectively deterring potential hackers and protecting users’ assets.
Targeted Chains: Ethereum reclaimed its position as the most targeted chain, surpassing BNB Chain, compared to the previous period. The increased attention on Ethereum can be linked to its dominant market share and the high value of assets stored on its network.
Funds Recovery: The effectiveness of funds recovery efforts waned in Q3 2024, with only 3.6% of stolen funds recovered, contrasting with the 8.9% recovered in Q3 2023. This decline underscores the need for more robust recovery mechanisms and cross-industry collaboration to trace and retrieve stolen assets.

Despite the quarterly decline in crypto losses, the year-to-date figures serve as a stark reminder of the persistent threat posed by malicious actors within the crypto ecosystem. Mitchell Amador, CEO of Immunefi, emphasized the ongoing battle against evolving threats: “We’re seeing a higher number of incidents targeting DeFi, while CeFi experiences fewer incidents but often with more severe consequences, with hundreds of millions in stolen funds in a single exploit.”

Apart from this, the report highlighted several firms that accounted for losses in Q3 2024. These include WazirX, BingX, Penpie, and others.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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