The crypto sector experienced a significant surge in losses in the first half of 2024, totaling over $629 million, with centralized exchanges being the main targets.
Major incidents and causes
One of the most significant incidents occurred in May when over $300 million was stolen from DMM Bitcoin, one of Japan's largest crypto exchanges, due to a compromised private key. Analysts at Cyvers emphasized the urgent need for robust key management following this breach. Improper access control was identified as the leading cause of hacks in Q2 2024, particularly affecting centralized exchanges.
Improvement in fund recovery
Despite the increase in losses, fund recovery efforts improved by 42% year-over-year in Q2 2024, driven by proactive measures and rapid response strategies. However, Cyvers warns that the threat landscape is still evolving, with address poisoning, oracle manipulation, and cross-chain attacks becoming more common.
Future threats and precautions
While centralized exchanges took the largest hit, decentralized finance protocols also faced considerable risks. The blockchain forensic firm stressed the importance of real-time protection and monitoring to prevent further losses. Looking ahead, Cyvers cautioned about the rise of more sophisticated contract exploits, artificial intelligence-driven attacks, and threats to layer-2 protocols, urging the crypto community to remain vigilant and secure their assets.
The total amount of lost crypto assets continues to grow despite improved recovery measures. Both centralized and decentralized exchanges need to strengthen their protection strategies to prevent further losses.
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