Last updated:
April 16, 2024 05:37 EDT
| 2 min read
Ethereum has emerged as the primary target of blockchain breaches in 2024, with 33 documented incidents, according to a recent study.
Data from Smart Betting Guide indicates that after Ethereum, BNB Chain has faced the second-highest number of hacking events (14) in 2024. Arbitrum and Solana have each encountered 6 incidents, whereas Bitcoin has been affected by only two.
It is noteworthy that the Decentralized Finance (DeFi) sector has been particularly vulnerable to these attacks, representing all reported incidents thus far this year.
The top 10 largest losses recorded this year are as follows:
Orbit Bridge: $81,680,000
Munchables: $62,800,000
PlayDapp: $32,350,000
FixedFloat: $26,100,000
GMEE: $15,000,000
WOOFi: $8,750,000
Coinspaid: $7,500,000
Abracadabra Money: $6,500,000
Seneca: $6,500,000
Gamma Strategies: $6,200,000
The report also highlighted that cryptocurrency users have suffered substantial losses amounting to over \(437 million due to scams and breaches in 2024. Fraudulent activities, such as rug pulls, have also contributed to the overall losses, albeit to a lesser extent, totaling \)14 million.
Decrease in Theft Rates in March
Furthermore, a recent report by CertiK indicates a notable decrease in crypto theft during March. The report revealed that malicious actors stole approximately \(79 million from DeFi projects, marking a significant 48% decrease compared to the \)160 million stolen in February.
In March, one of the significant crypto theft incidents involved a MakerDAO-based smart contract deployed by Curio on Ethereum. While initial estimates suggested a loss of around \(16 million, PeckShield later revised the figure, indicating that the actual amount stolen might be closer to \)40 million.
Prisma Finance experienced the second-largest loss in March, with a flash loan attack resulting in the misappropriation of about $12.4 million. The attacker, who identified as a white-hat hacker, initially committed to returning the stolen funds following an online conference hosted by the project’s team.
However, during the event, the attacker’s demands changed, requiring team members to publicly disclose their identities and issue an apology.
According to CertiK, security breaches were not limited to DeFi protocols. The Binance-backed platform NFPrompt encountered a cyber intrusion, leading to misappropriated funds of approximately \(10 million. Additionally, the WooFi decentralized exchange reported losses of around \)8.5 million following a hacking incident.
Ensuring Online Safety for Crypto Users
Smart Betting Guide advises that securing cryptocurrency involves avoiding storing passwords and seed phrases on cloud storage. Seed phrases, serving as recovery keys, are susceptible to theft by hackers aiming to steal digital assets.
For enhanced security, the report suggests using a hardware wallet. This device, similar to a USB drive, securely stores a user’s private keys offline (cold storage). When necessary, the keys can be connected online to facilitate transactions.
Furthermore, users are urged to implement essential security practices, including refraining from clicking links in suspicious emails, enabling Two-Factor Authentication (2FA) for logins, and steering clear of interactions with online pop-ups or links. Additionally, caution against messages promising quick financial gains is recommended, as these often originate from fraudulent accounts, a prevalent social media scam.