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In the first quarter of 2024, more than $336 million in digital assets were stolen from decentralized finance platforms across 61 incidents of hacking and fraud. During this period, criminals made off with digital assets valued at $144.48 million in two major hacking incidents. In contrast, centralized finance platforms reported no incidents of hacking or fraud in the first three months of the year.
Q1 Losses 23% Lower Than Same Period Last Year
In the first quarter of 2024, the Web3 ecosystem lost digital funds worth $336,311,217. This figure is 23.1% lower than the losses suffered in the same period last year. According to the latest report on crypto losses from Immunefi, hacks were the predominant attack vector, accounting for 95.6% of all losses.
During this period, two major hacking incidents resulted in the theft of digital assets worth $144,480,000, representing 43% of the quarter’s total losses. The report data indicates that fraud was responsible for the theft of digital assets worth $14,665,817.
The data shows that all the losses were incurred by decentralized finance (defi) platforms across 61 specific incidents. This loss represents a 22.8% decrease compared to Q1 2023 when defi losses totaled $435,675,543, according to the report.
In contrast, centralized finance platforms, which suffered losses totaling approximately $1.8 million in Q1 of 2023, recorded no hacking or fraud incidents in the first three months of this year.
Private Key Compromises on the Rise
Mitchell Amador, a founder and CEO at Immunefi, commented on the losses suffered in Q1 of 2024:
While it’s positive that overall losses have decreased, it’s essential to note that defi faced significant challenges, accounting for 100% of total losses in Q1 2024. Particularly, the ecosystem witnessed a considerable volume of losses due to private key compromises, emphasizing the critical need to secure both code and protocol infrastructure.
Regarding the extent of losses suffered per chain, the report identified Ethereum (33 incidents) and BNB Chain (17 incidents) as the most targeted networks. These losses account for 73% of all losses incurred in the quarter.
The report also noted that about $73,885,000, or 22% of the losses for the period, have been recovered. The Web3 gaming app, which was hacked on March 26, tops the list of projects with the most recovered funds at $62.8 million.
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