The cryptocurrency industry has encountered unprecedented levels of losses in 2024, surpassing expectations. The total damage for the first three quarters of the year exceeded $2.114 billion, already surpassing last year's total losses.

CeFi vs. DeFi Comparison

The incidents in centralized financial systems (CeFi) have significantly increased, while decentralized finance (DeFi) platforms have shown relative stability. Despite the overall increase in industry losses, DeFi platforms have shown a 25% year-on-year reduction in losses.

Centralized Finance Incidents

This year has seen a significant increase in hacking attacks on centralized exchanges. Notably, one of the largest breaches occurred at the Japanese exchange DMM Bitcoin, losing $305 million. Turkish exchange BtcTurk also reported a $55 million loss.

Vulnerabilities and their Impact

A total of 131 incidents were reported from January to September 2024. Access control violations surged, causing $1.62 billion in losses, a 99% increase from the previous year. However, losses from smart contract vulnerabilities decreased by 19%.

The need to enhance security protocols in the cryptocurrency industry is increasingly evident. Cyvers emphasizes the importance of implementing real-time threat detection technologies and evolving regulatory frameworks.