The cryptocurrency industry has faced a sharp rise in cyberattacks, with losses in 2024 reaching a staggering $2.1 billion, according to a report by Web3 cybersecurity firm Cyvers.
This figure, recorded in just the first three quarters of the year, has already surpassed the total losses from hacks and scams in 2023.
Centralized finance (CeFi) platforms were the hardest hit, seeing a 984% year-on-year increase in losses.
Much of the damage occurred in the second quarter, where five major incidents accounted for $401 million in losses. Among the most significant was the hacking of Japan’s DMM exchange, which lost $305 million in Bitcoin due to a private-key breach.
Another notable incident involved Turkey’s BtcTurk, which lost $55 million in a similar attack.
While CeFi operators bore the brunt of the attacks, decentralized finance (DeFi) platforms also remained vulnerable, though losses in that sector dropped by 25% compared to the previous year.
Cyvers attributes the decrease to a maturing DeFi ecosystem, with improvements in smart contract security.
However, DeFi hacks still accounted for $171.3 million in Q2 alone, primarily impacting Ethereum and the BNB Smart Chain.
Bad actors targeted DeFi more frequently than CeFi in 2024, with $1.6 billion lost to access control vulnerabilities across 51 incidents. This represents a stark increase from the $742.6 million lost across 16 incidents in 2023.
While smart contract vulnerabilities decreased slightly, they still cost the industry $380.4 million over 79 incidents.
As cyberattacks grow in scale and sophistication, Cyvers warned that the cryptocurrency industry must be more proactive in addressing emerging threats.
The report highlights concerns over artificial intelligence-driven attacks and the potential risks posed by quantum computing, which could undermine the security of blockchain networks.
Cyvers calls for a stronger focus on cross-chain security protocols, real-time threat monitoring, and regulatory frameworks to combat these rising challenges.
The company stressed the need for global regulators, such as the International Organization of Securities Commissions, to prioritize crypto security in their oversight efforts.
