Cryptocurrency enthusiasts faced a rollercoaster ride in May 2024, with Immunefi’s latest report revealing significant losses due to hacks and fraud. Despite the challenges, intriguing trends emerged.
Are we winning the battle against crypto crime? Or are hackers simply shifting their tactics? Dive deeper to discover the answers.
Declining Losses: Sign of Progress?
Compared to 2023, May 2024 saw a notable decrease in total losses, amounting to $473,229,944, marking a 20% downturn. This shift suggests potential improvements in security measures or a change in cybercriminal strategies.
May 2024: Noteworthy Incidents
Throughout May 2024, the crypto community grappled with losses totaling $52,371,900 across 21 incidents. While significant, this figure represents a decline from both the previous year and April 2024, offering a glimmer of hope amid the challenges.
The majority of the financial losses in May were concentrated in two significant incidents:
- Gala Games:
This crypto gaming project was hit by a loss valued at $21 million and this makes it the biggest single loss of the month. Gala Games has been one of the industry’s leading blockchain gaming firms and therefore, such a failure shows that no project, even those with great potential in the industry, is immune to risks.
- Sonne Finance:
A lending decentralised app, SonneFinance, lost $20 million. This case once again illustrates the potential dangers lurking in DeFi lending platforms, which are dangerous because of their volumes.
Hacks vs. Frauds Analysis
Hacking incidents continued to dominate, accounting for a whopping 96% of total losses in May 2024. A total of $50,618,600 was stolen in 14 hacking attacks, emphasizing the persistent threat posed by cyber intruders.
While less prevalent, fraud remained a significant concern, comprising 3% of reported incidents and resulting in $1,753,300 in losses. This highlights the importance of remaining vigilant against all forms of cybercrime.
Decentralized Finance (DeFi) platforms bore the brunt of the assaults, with 21 incidents resulting in losses totaling $52,371,900. This underscores the urgent need for bolstered security measures within this rapidly growing sector.
Shifting Focus: CeFi vs. DeFi
Interestingly, Centralized Finance (CeFi) platforms remained unscathed, indicating a potential shift in hackers’ focus towards decentralized systems.
Targets Identified: Ethereum and BNB
Ethereum and Binance Coin (BNB) emerged as prime targets, collectively accounting for 62% of the total losses. Ethereum bore the brunt, experiencing nine instances of exploitation, constituting 43% of the losses, while BNB Chain suffered four occurrences, resulting in a 19% loss.
Other chains impacted are Base, Arbitrum, Solana, TON, Blast, Fantom, Optimism, Polygon, and Polygon, contributing 8% of the total losses.
When Will Action Be Taken?
The above-elaborated figures concerning May 2024 show overall crypto losses are declining y-o-y and m-o-m. According to the data, the funds stolen in cyber attacks are still being focused on DeFi platforms, while Ethereum and BNB Chain are again leaders in the percentage of thefts.
All in all…crypto losses decline, but the fight against crime continues!
