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Year-to-date, the crypto market has experienced $1.48 billion in losses across 209 incidents, a 15% decrease compared to the same period in 2023.Centralized exchanges (CEXs) accounted for 50% of the total crypto market losses in 2024, with $724 million lost.CEXs were particularly targeted due to compromised hot wallets, with hackers adopting more sophisticated methods, including fake job placements.In November, the crypto market losses experienced by the industry stood at $71 million, the second-lowest monthly losses so far. Blockchain security firm Immunefi noted that this marks a significant improvement in comparison to November 2023, when the losses stood at a staggering $343 million.
The current data from Immunefi shows that the losses have dropped 79% year-over-year and more than 4% month-over-month. Crypto market losses usually skyrocket at the time of heightened market activity. Thus, this development is actually positive considering November 2024 was one of the peak months for crypto trading in comparison to the last year.
Year-to-date (YTD) data reveals that the industry has lost $1.48 billion in 2024 due to hacks and rug pulls across 209 incidents. This marks a 15% decrease compared to the $1.7 billion lost during the same period in 2023.
As per the Immunefi data, two incidents in particular led to most of November’s $71 million losses. DeFi project Thala Labs alone accounted for $25.5 million in losses while the meme coin trading terminal DEXX suffered a loss of $21 million. Furthermore, DeFi protocols contributed to 100% of the total losses this month.
Hacks continued to be the primary cause of losses, totaling $70.99 million across 24 incidents. Rug pulls accounted for a smaller portion, with $25,300 lost in two cases. Among all blockchains, Binance-backed BNB Chain was the prime target, responsible for nearly 47% of the total losses across all networks. Immunefi noted:
“Ethereum experienced 9 incidents, representing 30% of the total. Solana, Polygon, Fantom, Avalanche, Arbitrum, and Aptos each experienced one incident, accounting for 3.3%, respectively.”
Centralized Exchanges (CEXs) Alone Contribute 50% of Crypto Market Losses
Centralized exchanges (CEXs) continue to remain a major target for crypto hackers. As per the Immunefi data CEXs alone contributed 50% of crypto market losses so far in 2024. This totaled $721 million, thereby marking the highest share of attacks on CEXs since 2021.
The vulnerability of centralized exchanges surged particularly during the third quarter of 2024 when 72% of the crypto losses came only from CeFi hacks. For example, the hack of Indian crypto exchange WazirX in July alone accounted for the losses of $235 million.
Immunefi pointed out that the vulnerabilities of centralized finance (CeFi) often arise from compromised hot wallets, which allow attackers to drain significant funds. In 2024, centralized exchanges (CEXs) lost $724 million across just nine incidents, while decentralized finance (DeFi) platforms experienced similar losses spread across 200 attacks. The security firm also noted that blackhat hackers have increasingly employed innovative methods to target centralized platforms.
This includes securing fake job placements and impersonating recruiters to breach into internal teams and CEX infrastructure.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
