In June, net losses from cryptocurrency hack attacks saw a significant reduction of 54.2% compared to May. Crypto analysis firm PeckShield reported approximately 20 hack incidents in June, resulting in net losses of around $176 million. This is a notable decrease from May 2024, when hackers managed to steal $385 million.
What Were the Largest Hacks?
PeckShield identified the BtcTurk attack as the most substantial hack in June, with cybercriminals seizing more than $100 million in crypto assets. Initial estimates by ZachXBT put the losses at $55 million. The second-largest attack targeted another centralized exchange, Lykke, with losses reaching $22 million. Additionally, the DeFi lending protocol UwU Lend faced losses of $19.4 million, ranking third in the list of significant hacks.
Among the top five hacks in June, the most substantial losses were incurred by two centralized exchanges, followed by three decentralized finance (DeFi) protocols. Notably, May 2024 marked the highest month for crypto losses, with a net loss of approximately $385 million due to various crypto attacks, including the major $305 million hack of the DMM exchange on May 31.
Why Did Losses Increase in Q2 2024?
February experienced a net loss of $360 million, while April registered the lowest with $60.19 million in losses. Despite the reduction in net losses from vulnerabilities in June, the second quarter of 2024 observed a 115% increase in losses compared to the same period in 2023. In the second quarter of 2023, losses were $220 million, whereas this year, they surged to over $572 million.
The majority of these losses were attributed to centralized exchange attacks. In this quarter, losses from centralized protocols and exchange attacks totaled $401 million, making up 70% of the overall losses. Although losses from centralized exchanges were higher, the data indicates that only a small fraction of all attempts on these exchanges were successful. Hackers successfully exploited centralized platforms only five times this quarter, whereas there were 62 successful attacks on decentralized protocols.
User-Usable Insights
Here are some key takeaways for users from these incidents:
- Centralized exchanges remain primary targets; consider using decentralized options.
- Invest in robust security measures to safeguard your crypto assets.
- Stay informed about the latest security vulnerabilities and hacks.
- Consider diversifying your crypto holdings to mitigate risk.
Despite the reduction in June, the overall trend in Q2 2024 highlights the persistent threats faced by both centralized and decentralized platforms in the crypto space. Users and exchanges alike need to prioritize security to prevent significant financial losses.