What Happened?
The cryptocurrency industry lost $55.1 million in October due to security vulnerabilities, a decrease of 56.6% from the previous month. However, the total losses for 2024 have still surpassed $1.4 billion.
The major losses in October were mainly concentrated in two DeFi protocols, Radiant Capital and Tapioca DAO, which were hacked and lost $50 million and $4.4 million, respectively.
The head of security at the blockchain security platform Immunefi stated that an increasing number of projects are adopting “stricter cybersecurity measures,” and the maturity of the security system has seen significant improvement.
Cryptocurrency Industry Loses Over $1.4 Billion Due to Security Vulnerabilities in 2024
According to the latest report from blockchain security platform Immunefi, the cryptocurrency industry has lost over $1.4 billion in 2024 due to hacks and scams.
Although the amount lost in October was 56.6% lower than in September, coming to $55.1 million, hackers still frequently attacked DeFi (decentralized finance protocols). The report notes that there have been 179 hacking and scam incidents so far this year, indicating that the blockchain industry still faces significant cybersecurity challenges.
The losses in October were mainly focused on a few significant incidents, including the hacks of two major DeFi protocols, Radiant Capital and Tapioca DAO, which lost $50 million and $4.4 million, respectively.
Additionally, projects such as P719, Morpho Labs, and Ramses Exchange also suffered hacks. Immunefi pointed out that in the hacking incidents of October, the BNB chain was the primary target, accounting for 50% of the events, followed by Ethereum and Arbitrum, each accounting for 25%.
Radiant Capital Lost Over $50 Million in Digital Assets
The BNB chain saw a high frequency of hacker attacks in October, accounting for 50% of the incident volume, including the attack on the decentralized lending protocol Radiant Capital.
On October 16, the protocol suspended its market operations on the BNB chain and Arbitrum network following an intrusion. The hackers successfully obtained the protocol’s private keys and control over the smart contracts, stealing over $50 million in digital assets.
In a post-incident review report, the Radiant Capital team stated that the hackers had infiltrated the devices of at least three core developers through malicious software, thereby obtaining the information needed for the attack.
On November 1, Radiant Capital announced the resumption of its Ethereum lending market operations, stating that it had improved the security mechanisms of the protocol. According to Radiant Capital, they have transferred the ownership of the protocol to a “timelock contract,” which requires any changes to undergo a mandatory waiting period of 72 hours, thereby enhancing the protocol’s security.
Increased Maturity of Security Systems
Despite ongoing cybersecurity challenges in the cryptocurrency industry, Immunefi’s head of security, Gonçalo Magalhães, stated that as more projects adopt “stricter cybersecurity measures,” including sound smart contract design, comprehensive audits, and the introduction of bug bounty programs, the maturity of the security system has significantly improved compared to a few years ago.
Magalhães noted that the growing number of cybersecurity professionals within the blockchain industry is making it more difficult for hackers to penetrate, reducing potential risks.
The Immunefi report also analyzes that many decentralized protocols and DeFi projects are actively adopting these security strategies. Although the total number of hacking incidents remains high, losses may gradually decrease. The industry is beginning to deploy distributed insurance mechanisms, reducing the risk of individual incidents and forming a multi-layered defense network maintained by project teams, cybersecurity experts, and users.
Source:
Bitcoinist, The Block