Losses from scams and exploits increased significantly in the second quarter of 2024, with centralized exchanges losing millions, reversing a previous downtrend.
Crypto losses from hacks and scams more than doubled in the second quarter of 2024 compared to the same period the previous year, according to research from blockchain security platform Immunefi.
Over $572 million was lost in Q2, compared to only $220 million in Q2 of 2023. Centralized exchange hacks made up the bulk of the losses in the quarter.
Prior to the second quarter, losses from hacks and scams had been declining, with Immunefi reporting a 23% reduction in Q1. This decline continued through April and most of May, but losses dramatically increased at the end of May and June.
The biggest single loss in the second quarter was from the May 31 private key hack of crypto exchange DMM, which drained $305 million worth of Bitcoin from the exchange.
An additional $55 million of losses came from the BtcTurk hack on June 22. Together, these top two hacks accounted for more than 62% of total losses for the quarter, the report stated.
Summary Review: The second quarter of 2024 saw a significant spike in crypto losses from hacks and scams, reversing the downward trend observed earlier in the year. The total losses amounted to $572 million, a 113% increase compared to the same period in 2023. Centralized exchanges were the primary targets, with two major hacks—DMM and BtcTurk—accounting for over 62% of the total losses. This surge underscores the persistent and evolving security challenges faced by the cryptocurrency industry.
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