DeFi Hacks Down 50% Last Year; Total Crypto Losses Pass $1B Year-Over-Year
- The total amount stolen in DeFi hacks decreased by 50% in 2023 compared to 2022.
- Off-chain attacks are increasing, constituting 57.5% of the stolen amount in 2023. This includes private key theft.
- Crypto losses from hacks and scams exceeded $1 billion in 2024.
Crypto scams and hacks are an unfortunate part of the industry, and DeFi protocols are frequent targets.
However, while the industry continues to suffer billions in losses each year, we have noticed a recurring trend as the market matures.
Let's dive into the news and see why DeFi hacks are down 50% since last year, with $1B stolen in 2024.
Major 2023 Decline in DeFi Hacks - Will The Trend Continue?A recent Halborn report indicates that 2023 saw adrastic decrease in the volume and amount of DeFi hacks. Notorious incidents like the Ronin bridge hack in March 2022 led to millions in crypto stolen, with little recovered.
2023 saw far fewer attacksas the DeFi market continues to mature. However, over half (57.5%) of the funds stolen in 2023 came fromoff-chain hacks (compromised wallets and similar attacks), while most took place on unaudited protocols.
The report emphasized a common vulnerability; nearly 80% of hacked protocols failed to employ multi-signature wallets, which require more than one party to approve transactions.
Hacks and Scams Still Pass the $1B Mark in 2024Despite DeFi hacks being down 50% last year, $1B was stolen in 2024 by scammers. The WazirX hack alone accounted for $234.9M of that total.
Scammers and hackers are maturing along with the market.Bad actors are turning to complicated phishing schemes, installing keyloggers, and pushing bad links in Telegram and Discord channels.
Most hackers use the same methods for crypto and old-school TradFi hacks - phishing schemes, emotional ploys, and impersonating celebrities and influencers.
These scams rely on tried-and-true ploys and the constant crypto fear of missing out (FOMO) to convince victims to send funds they'll never get back.
More sophisticated technological exploits are available, such as finding unaudited protocols or sections of protocols to attack.
However, there is good news - crypto security firms are successfully finding the flaws before hackers do, in one case preventing a $64M hack.
Stay Safe, Be SmartBasic crypto protocols still provide the best security. Don't follow suspicious links, trade on fully audited protocols, and use cold wallets when possible.
Crypto scams are everywhere, and it's easy to fall prey to them if you're not careful. Always DYOR crypto projects before investing, and never surrender your private keys.
References- Minterest Security Incident Post-Mortem Report (Minterest)
- How AstraSec team prevented DeFi protocol from suffering $64m hack - and they won $65k for it (DL News)
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