According to Immunefi’s Q3 2024 report, the crypto market has faced significant threats from hackers and fraudsters, resulting in losses amounting to $412.9 million. Centralized Finance (CeFi) platforms have been the most affected, highlighting the vulnerabilities within these systems.
WazirX and BingX Badly Hit
Two major crypto exchanges, WazirX and BingX, experienced substantial losses during this period. WazirX, an Indian exchange, was the hardest hit, losing $235 million in a July hack. In September, Singapore’s BingX suffered a $52 million loss. These two incidents alone accounted for $287 million, underscoring the increasing weaknesses in centralized exchanges.
CeFi vs. DeFi: A Growing Shift in Targets
The report from Immunefi indicates a notable shift in the focus of cyber attackers towards centralized finance platforms. CeFi platforms accounted for 74.8% of the total losses in Q3 2024, marking a 66.4% increase compared to Q3 2023. Conversely, losses in Decentralized Finance (DeFi) platforms declined by 79.2%, making up only 25.2% of the total. This shift suggests that hackers are increasingly targeting centralized systems, which often lack the extensive decentralization and security reviews typical of many DeFi projects.
Ethereum and BNB Chain: Top Targets for Hackers
Ethereum emerged as the most prominent blockchain target, with 15 successful hacks accounting for 44.1% of all reported incidents. The BNB Chain was the second most targeted, experiencing eight hacks, which represented 23.5% of the total. While blockchains like Base, Blast, Solana, and Arbitrum were less frequently attacked, they were not entirely immune to security breaches.
Mitchell Amador, CEO of Immunefi, emphasized the growing risks within centralized finance by stating, “We’re seeing fewer incidents targeting CeFi, but these incidents often result in more severe losses due to poor private key management and a lack of rigorous audits. In contrast, DeFi platforms, while still targeted, have seen a reduction in losses due to enhanced security practices.” Amador stressed the importance of implementing higher levels of centralization to enhance the security network, particularly in managing private keys.
Fund Recovery Remains Limited
Despite efforts to recover lost funds, only $14.9 million was returned in two incidents during Q3, representing a low recovery ratio of 3.6%. This figure is notably lower compared to Q2 2024, which had an 8.9% recovery ratio. The ongoing challenge of fund recovery continues to hinder the growth of securities and the cooperation between crypto platforms and law enforcement agencies.
While the overall loss figure is lower than in Q3 2023, the trend of increasing attention on centralized platforms like WazirX and BingX suggests that hackers may continue to adapt their strategies. As the crypto market evolves, enhancing security measures and fostering collaboration with law enforcement will be crucial in mitigating these threats.
