What Happened?
The cryptocurrency industry suffered a loss of $55.1 million in October due to security breaches, a 56.6% decrease from the previous month. However, the total losses for 2024 have still surpassed $1.4 billion.
The majority of October’s losses were concentrated in two major DeFi protocols, Radiant Capital and Tapioca DAO, which were hacked for $50 million and $4.4 million, respectively.
Immunefi’s head of security stated that an increasing number of projects are adopting “stricter cybersecurity measures,” and the maturity of the security ecosystem has significantly improved.
Cryptocurrency Industry Losses Exceed $1.4 Billion in 2024 Due to Security Breaches
According to the latest report from blockchain security platform Immunefi, the cryptocurrency industry has suffered over $1.4 billion in losses due to hacks and scams in 2024.
Although the losses in October dropped by 56.6% to $55.1 million compared to September, hackers still frequently targeted DeFi (Decentralized Finance protocols). The report notes that there have been a total of 179 hacking and scam incidents this year, indicating that the blockchain industry still faces significant cybersecurity challenges.
October’s losses were mainly focused on several major incidents, including hacks on two major DeFi protocols, Radiant Capital and Tapioca DAO, losing $50 million and $4.4 million, respectively.
In addition, projects like P719, Morpho Labs, and Ramses Exchange also fell victim to hackers. Immunefi pointed out that in the hacking events of October, the BNB chain was the primary target, accounting for 50% of the incidents, followed by Ethereum and Arbitrum, each accounting for 25%.
Radiant Capital Lost Over $50 Million in Digital Assets
The BNB chain experienced a high frequency of hacker attacks in October, accounting for 50% of the incidents, including an attack on the decentralized lending protocol Radiant Capital.
On October 16, the protocol suspended its market operations on the BNB chain and Arbitrum network following a breach. Hackers successfully obtained the protocol’s private keys and control of its smart contracts, stealing over $50 million in digital assets.
In a post-incident review report, the Radiant Capital team stated that hackers infiltrated the devices of at least three core developers through malicious software, thereby obtaining the information needed for the attack.
On November 1, Radiant Capital announced the resumption of its Ethereum lending market operations, stating that it had improved the protocol’s security mechanisms. According to Radiant Capital, they have transferred the protocol’s ownership to a “timelock contract,” which requires any changes to undergo a mandatory 72-hour waiting period, thereby enhancing the protocol’s security.
Security System Maturity Increases
Despite ongoing cybersecurity challenges in the cryptocurrency industry, Immunefi’s head of security, Gonçalo Magalhães, stated that as more projects adopt “stricter cybersecurity measures,” including robust smart contract design, comprehensive audits, and the introduction of bug bounty programs, the maturity of the security ecosystem has significantly improved compared to several years ago.
Magalhães pointed out that the growth of cybersecurity professionals within the blockchain industry is making it increasingly difficult for hackers to infiltrate, thereby reducing potential risks.
The Immunefi report also analyzed that many decentralized protocols and DeFi projects are actively adopting these security strategies. Although the total number of hacking incidents remains high, the potential losses may gradually decrease. The industry is beginning to deploy decentralized insurance mechanisms to reduce the risk of individual incidents, forming a multi-layered defense network maintained by project teams, cybersecurity experts, and users.
Source:
Bitcoinist, The Block