In a recent report by Immunefi, it was revealed that cryptocurrency hackers stole an estimated $409 million during the third quarter of 2024. This staggering amount highlights the ongoing threat to both centralized and decentralized platforms in the ever-evolving crypto landscape.
Crypto Hacks Lead to Massive Losses in Q3 2024
The report from Immunefi sheds light on the growing trend of cyberattacks in the cryptocurrency sector, with notable incidents involving Singapore-based exchange BingX and Indian exchange WazirX, which collectively accounted for nearly 69.5% of the total losses—over $3 million worth of assets. As decentralized finance (DeFi) continues to expand, with more than $87 billion total value locked, the risk of hacking remains prevalent.
During this quarter, hacks represented a staggering 99.25% of all funds lost in the crypto space, while fraud accounted for only 0.75%. Interestingly, fraudulent activities have seen a significant decline compared to the previous year, decreasing by 86.4%. The current $409 million loss marks a notable reduction of 40% from the same quarter in 2023, where losses exceeded $685 million.
Immunefi Report Exposes Major Hacks
The Immunefi report detailed several high-profile breaches that contributed to the quarter’s substantial losses. Among the most significant were the Penipe protocol, which suffered a loss of $27 million, Indodex with a $22 million loss, Ronin that lost $12 million, LI.FI Protocol with $10 million taken, and Bittensor experiencing an $8 million hack. These incidents reveal the critical vulnerabilities not only in decentralized finance but also in centralized finance systems.
The Growing Risk to CeFi and DeFi
Despite a higher number of hacking incidents in DeFi, centralized finance (CeFi) platforms have seen more severe consequences, with individual attacks resulting in the loss of hundreds of millions of dollars. Mitchell Amador, the founder and CEO of Immunefi, commented, “We’re witnessing more incidents targeting DeFi, whereas CeFi might experience fewer attacks but with often catastrophic financial repercussions.” He emphasized the pressing need for robust private key management across CeFi platforms, noting the necessity for stringent policies and emergency measures to protect against such vulnerabilities.
WazirX Takes Steps to Recover
In light of the ongoing challenges posed by hacking incidents, exchanges like WazirX are implementing proactive measures to recover and enhance their security protocols. The report coincided with a ruling by the High Court of Singapore, granting WazirX a four-month restructuring moratorium. This decision provides the company crucial time to restore its clients’ crypto balances and refine its operational strategies.
WazirX founder Nischal Shetty expressed gratitude to the user community for their support during these difficult times, acknowledging the hardship caused by the cyberattack. In a heartfelt message shared on social media, Shetty stated, “We are working tirelessly to bring a faster resolution and ease the pain this has caused. As we move forward, our commitment remains strong—to ensure transparency, rebuild trust, and create a future where we emerge more resilient together.”