Crypto Losses Hit $1.49 Billion in 2024: How Did This Happen?

The cryptocurrency industry saw $1.49 billion in losses from hacks and scams in 2024, according to a new report from blockchain security firm Immunefi. While this marks a 15% drop from 2023’s $1.76 billion in crypto losses, the numbers highlight ongoing security challenges in the crypto space.

Analyzing Crypto Losses: Key Trends and Statistics

November 2024 emerged as one of the year’s better months for crypto security, with losses totaling $71 million across 26 incidents. This represents the second-lowest monthly figure in 2024 and a significant 79% decrease from November 2023’s $343 million in losses.

Two major attacks dominated November’s statistics: decentralized finance platform Thala Labs lost $25.5 million, while memecoin trading platform DEXX suffered a $21 million breach. However, Thala Labs later recovered its stolen funds after law enforcement tracked down the hacker.

The Immunefi report reveals that DeFi platforms remain the primary target for attackers, accounting for 100% of November’s incidents. Hackers showed a particular interest in the BNB Chain, which suffered 14 separate attacks, representing 46.7% of all targeted networks. Ethereum followed with 9 incidents, while other chains like Solana, Polygon, and Arbitrum each experienced single attacks.

The data shows a clear dominance of hacking over fraud in 2024’s crypto losses. Of November’s $71 million total, nearly all ($71 million) came from 24 hacking incidents, while only $25,300 was lost to two rug pulls. This pattern suggests that while outright fraud has decreased, sophisticated attacks on technical vulnerabilities remain a serious threat.

May and July proved to be the most damaging months of 2024, with losses of $359 million and $282 million, respectively. These spikes demonstrate how single, large-scale attacks can significantly impact overall industry losses.

Looking Ahead

The findings underscore the critical importance of security in the cryptocurrency sector. While the overall decrease in losses compared to 2023 might suggest improving security measures, the continued success of major hacks indicates that platforms must remain vigilant.

The concentration of attacks on DeFi protocols and specific blockchain networks like BNB Chain points to areas where the industry needs to focus its security efforts.

These statistics serve as a reminder that despite the industry’s growth and maturation, cryptocurrency platforms must continue strengthening their security infrastructure to protect user funds and maintain trust in the ecosystem.