Cryptocurrency Attacks on Centralized Platforms Surge 1000% from Q2 2023 to Q2 2024, CeFi Users Licking Wounds
According to data from Web3 vulnerability bounty company ImmuneFi, there has been a 1000% increase in attacks on centralized platforms, resulting in over $4 billion in cryptocurrency assets being drained in 5 incidents, compared to $37 million during the same period last year. The largest attack was on the Japanese exchange DMM Bitcoin, which suffered losses of $305 million, followed by BTC Turk with $55 million in losses.
In contrast, the DeFi industry has seen a 25% decrease in attacks this quarter compared to Q2 2023.
Cryptocurrency Losses to Hackers YTD
According to a recent research paper by two scholars from the University of Macau and one from the University of Illinois, Web3 users are becoming increasingly savvy in terms of security.
The study, titled “Understanding User-Perceived Security Risks and Mitigation Strategies in the Web3 Ecosystem,” identified four main issues, including rug pulls, smart contract vulnerabilities, social engineering attacks, and centralized exchange collapses. Users are now devising their own strategies to protect themselves from potential attacks.
The most popular strategies include risk assessment, such as testing small-scale investments, investing only in established projects, and diversifying portfolios.
While the research indicates that user groups are more mature and conscious in terms of risk, these numbers show that malicious actors are still rampant in the field.