H1 2024 Sees $630m In Crypto Losses, Exchanges Take Biggest Hit

Crypto losses nearly reached $630 million in the first half of 2024, with centralized exchanges hit hardest, according to Cyvers.

The crypto market experienced a surge in losses, totaling over $629 million in the first half of 2024, doubling the amount from the previous year, as reported by analytical firm Cyvers. In an X post on Aug. 22, the firm highlighted that centralized exchanges were the primary targets, marking a significant shift in cyberattack focus.

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One of the most significant incidents occurred in May when over $300 million was stolen from DMM Bitcoin, one of Japan’s largest crypto exchanges, due to a compromised private key. Analysts at Cyvers emphasized the “urgent need for robust key management” following this breach. Improper access control was identified as the leading cause of hacks in Q2 2024, particularly affecting centralized exchanges.

Despite the increase in losses, fund recovery efforts improved by 42% year-over-year in Q2 2024, driven by proactive measures and rapid response strategies. However, Cyvers warned that the threat landscape is still evolving, with “address poisoning, oracle manipulation, and cross-chain attacks becoming more common.”

While centralized exchanges took the largest hit, decentralized finance protocols also faced considerable risks. The blockchain forensic firm stressed the importance of real-time protection and monitoring to prevent further losses. Looking ahead, Cyvers cautioned about the rise of more sophisticated contract exploits, artificial intelligence-driven attacks, and threats to layer-2 protocols, urging the crypto community to remain vigilant and secure their assets.

Earlier in August, analysts from another blockchain analytics firm PeckShield reported that the crypto sector experienced a series of major attacks in July, resulting in losses of around $266 million. The largest breach involved WazirX, one of India’s biggest cryptocurrency exchanges, which lost $230 million in a sophisticated attack allegedly carried out by North Korean hackers, leading to a temporary pause in withdrawals.