Centralized Exchange Losses to Hacks are Up 1,000% This Year: ImmuneFi

CeFi users are nursing deep wounds, as attacks against centralized crypto platforms spiked 1,000% from Q2 2023 to Q2 2024.

According to Web3 bug bounty firm ImmuneFi, more than $400 million of crypto assets were drained across 5 incidents on centralized platforms, compared to $37 million during the same period last year. The largest attack was suffered by Japanese trading platform DMM Bitcoin, which lost $305 million, followed by BTC Turk with $55 million.

Notably, losses in the DeFi sector show an opposite trend. Attacks were down 25% this quarter compared to Q2 2023.

According to a recent research paper by two academics from the University of Macau and one from the University of Illinois, Web3 users are becoming more savvy in terms of safety and security.

Titled “Understanding User-Perceived Security Risks and Mitigation Strategies in the Web3 Ecosystem,” the study identified four main concerns, including rug pulls, smart contract vulnerabilities, social engineering attacks, and centralized exchange collapses. Those users are now developing their own strategies to protect themselves against possible attacks.

Among the most popular strategies are risk assessment, such as trying out small, test investments, only investing in established projects, and portfolio diversification.

Even if studies show a more mature and conscious user base when it comes to risks, the numbers indicate that malicious actors continue to run rampant in the space.