Web3 Loses Over $200 Million to Hacks in Two Months of 2024, More to Come

Immundefi's Jonah Michaels predicts that 2024 will see the highest level of Web3 hacks in terms of funds lost.

In the first two months of 2024, Web3 lost over $200 million to hackers, with more attacks expected – according to Immunefi.

Sead Fadilpašić Last updated: February 29, 2024 09:41 EST | 2 min read

In the fast-paced and exciting world of Web3, danger lurks around every corner. According to the latest report by Immunefi, the blockchain cybersecurity platform that protects over $60 billion in assets, Web3 has lost over $200 million to hacks in the first two months of 2024. That’s right, folks, over $200 million! It’s like those hackers have a direct line to your wallet, and they’re not afraid to use it.

But hold on to your hats, because the losses in February alone amounted to nearly $70 million. 🤑 It seems like these hackers don’t take any breaks, do they? They’re like an unstoppable force, constantly finding new ways to exploit vulnerabilities and make off with your hard-earned digital assets.

According to the ‘Crypto Losses in the February 2024 Report,’ Web3 has experienced a whopping 15.4% increase in losses compared to the same period in 2023. That’s right, folks, the situation is getting worse! It’s like the hackers have leveled up and are now even more brazen and cunning. It’s like playing a never-ending game of cat and mouse, where the cat always seems to get the upper hand.

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Now, you might be wondering, what exactly is causing these losses? Well, according to Jonah Michaels, Comms Lead at Immunefi, private key and wallet compromises are to blame for close to 30% of the total losses so far this year. It’s like your digital wallet is as secure as a paper bag with holes in it. 😱

But wait, there’s more! Michaels predicts that 2024 will witness the most substantial losses in Web3 ever. It’s like we’re heading towards an all-you-can-eat buffet for hackers, and they’re ready to feast on our digital assets. So buckle up, folks, because it’s going to be a wild ride.

February Sees 2x Decrease in Web3 Hacks Costs Compared to January

In February 2024, the losses due to hacks and frauds in the Web3 space decreased by almost 2x compared to January. But don’t let that fool you, folks. We’re still talking about a loss of $67,065,795 across 12 specific incidents. It’s like the hackers took a mini-vacation in February, but they’re back and ready to cause mayhem once again.

But hey, it’s not all doom and gloom. According to Michaels, there was a drop in the number of single incidents in February compared to January. It’s like the hackers decided to spread their attacks out instead of going all out in one shot. Maybe they’re trying to keep us on our toes, never knowing when and where they’ll strike next.

And let’s not forget about the lowest number of incidents overall in February compared to the same period in 2023. It’s like the hackers decided to take a breather and regroup for their next big heist. But don’t let your guard down, folks, because they’re just waiting for the perfect moment to strike.

Now, you might be wondering about the breakdown of losses between hacks and frauds. Well, let me tell you, hacks continue to be the predominant cause of losses in February. $65,413,795 was lost to hacks across ten specific incidents, while fraud only accounted for a measly $1,652,000 across two specific incidents. It’s like the hackers are playing a high-stakes game of poker, and they always seem to have a royal flush up their sleeves. 🃏

According to Michaels, as the activity and capital inflows increase in the Web3 ecosystem, hacking will remain the primary challenge for the industry. It’s like the hackers are the ultimate boss level, and we need to level up our security measures to protect our digital assets from their nefarious schemes.

DeFi Hit Hard – Again

In February, decentralized finance (DeFi) took another hit from hackers. A total of $67,065,795 was lost across 12 incidents. It’s like DeFi is a magnet for these bad actors, and they just can’t resist the allure of easy money.

The most targeted chains in the same period were Ethereum, BNB Chain, and Bitcoin. But it was Ethereum that suffered the most individual attacks, with 12 incidents. It’s like Ethereum is the golden goose for hackers, and they just can’t get enough of it.

Meanwhile, Immunefi, the guardian angel of the Web3 space, is offering over $157 million in available bounty rewards. They’ve already paid out over $90 million in total bounties and saved over $25 billion in user funds. It’s like they’re the knights in shining armor, tirelessly fighting off the hackers and protecting our digital assets.

So folks, it’s clear that the battle between good and evil in the Web3 space is far from over. The hackers might be relentless, but with the right security measures and the vigilance of platforms like Immunefi, we can stay one step ahead. So keep your digital wallets locked up tight and stay updated on the latest security practices.

Q&A:

Q: How can I protect my digital assets from hackers in the Web3 space? A: There are several steps you can take to protect your digital assets. First and foremost, make sure to use strong and unique passwords for all your accounts. Enable two-factor authentication whenever possible. Keep your software and devices up to date with the latest security patches. And most importantly, be cautious when clicking on suspicious links or downloading unknown files.

Q: What should I do if my digital assets are hacked? A: If you suspect that your digital assets have been hacked, the first thing you should do is contact the platform or exchange where you hold your assets. They will be able to guide you through the process of recovering your assets and securing your account. It’s also a good idea to report the incident to the appropriate authorities and monitor your accounts for any suspicious activity.

Future Outlook:

Based on the current trends and data, it’s clear that hacking in the Web3 space is on the rise. As the ecosystem continues to grow and attract more attention, it becomes an even more enticing target for hackers. It’s crucial for both individual users and platforms to strengthen their security measures and stay vigilant against potential threats.

Investment in blockchain cybersecurity companies and technologies is also expected to increase as businesses and individuals seek ways to protect their digital assets. This presents an opportunity for investors to capitalize on the growing demand for secure solutions.

Overall, while the battle against hackers in the Web3 space may seem daunting, there is hope. With continued advancements in security measures and the dedication of industry players like Immunefi, we can strive for a more secure and robust Web3 ecosystem.

References:

1. Crypto Users Lost $2B to Hacks, Scams, and Exploits in 2023 DeFi, Says Report
2. SEC Chair Gary Gensler Far from Frauds and Bankruptcies
3. DEX Platform FixedFloat Loses $26M in Bitcoin and Ether Exploit
4. Cyver’s Detects Security Breach at Duelbits
5. Tesla Missed Out on $300M in Profit Due to Bitcoin Sales

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