2024

Notable

The cryptocurrency sector has faced record losses in 2024, with total losses exceeding $2.114 billion in the first three quarters. This figure surpasses the total annual losses of 1.69 billion recorded in 2023, as reported by Cyvers in a statement shared with BSCN.&nbsp;
<blockquote>
 “2024 has already shattered records, with losses skyrocketing past the total for all of 2023,” Cyvers reported.&nbsp;
</blockquote>
This year's $2.114 billion loss represents a staggering 72% increase compared to 2023 during the same period, which had losses of $1.23 billion.&nbsp;
<h2 dir="ltr" id="span-span-cefi-vs-defi-a-growing-divide-span-span">CeFi vs. DeFi: A Growing Divide</h2>
<h3 dir="ltr" id="span-span-centralized-finance-cefi-incidents-span-span">Centralized Finance (CeFi) Incidents</h3>
Centralized exchanges (CeFi) have seen a dramatic rise in hacking incidents, with a nearly 1,000% year-on-year increase. Notable breaches in Q2 2024 contributed significantly to these figures.&nbsp;
&nbsp;
The&nbsp;<a style="text-decoration:none" href="https://bsc.news/post/japanese-crypto-exchange-dmm-bitcoin-loses-350-m-in-hack">DMM Bitcoin exchange</a> experienced one of the largest breaches, resulting in a loss of approximately $305 million. Another Turkish exchange, BtcTurk, reported losses of $55 million, further emphasizing the vulnerabilities within CeFi platforms.
&nbsp;
In total, centralized exchanges accounted for around $401 million in losses across five major incidents in Q2 alone.&nbsp;
<h3 dir="ltr" id="span-span-decentralized-finance-defi-trends-span-span">Decentralized Finance (DeFi) Trends</h3>
Despite the overall increase in crypto losses, DeFi platforms showed some resilience, with losses decreasing by 25% year-on-year in Q2 2024 compared to the previous year.&nbsp;
&nbsp;
However, DeFi still faced significant challenges, losing $171.3 million across 62 incidents. Ethereum and BNB Chain remained the primary targets for these exploits.
&nbsp;
While DeFi incidents reflect a more stable ecosystem compared to CeFi, the complexity of smart contracts and decentralized systems continues to expose users to risks.
<h2 dir="ltr" id="span-span-vulnerability-breakdown-span-span">Vulnerability Breakdown</h2>
From January to September 2024, there were a total of 131 reported incidents. This represents 197% increase compared to the 44 incidents reported in the same timeframe in 2023.&nbsp;
&nbsp;
The breakdown of incidents includes:
&nbsp;
<ul>
 <li>Smart Contract Exploits: 79 incidents</li>
 <li>Access Control Violations: 51 incidents</li>
</ul>
&nbsp;
In the previous year, there were 28 smart contract exploits and 16 access control violations. Access control vulnerabilities have surged to $1.62 billion in 2024, a 99% increase from $742.6 million in the same period in 2023.&nbsp;
&nbsp;
In contrast, losses from smart contract vulnerabilities decreased by 19%, totaling $380.4 million this year compared to $429.6 million last year.
&nbsp;
The surge in losses and incidents indicate the critical need for the cryptocurrency industry to enhance its security protocols. Cyvers stresses the importance of adopting real-time threat detection technologies and evolving regulatory frameworks.&nbsp;

Crypto Losses in 2024 Soar to $2.11 Billion, Surpassing 2023’s Annual Total: Report

Table of Contents

BSCN

Other articles published on Oct 7, 2024

Market Analysts Predict Bitcoin and Ethereum Trends

Ethereum’s Rally Pushes It to a Four-Day High

Crypto sponsorships with Premier League reach record high amidst gambling sponsor ban

Dogecoin (DOGE) Brutally Denied at $0.11: What's Next?

Christie’s Launches Blockchain Ownership Certificates for Photos

MemeVault: The Meme NFT Trading and Creation Platform

Join our free newsletter for daily crypto updates!