H1 2024 sees $630m in crypto losses, exchanges take biggest hit

According to Cyvers, cryptocurrency losses in the first half of 2024 reached almost $630 million, with centralized exchanges being the hardest hit.

The crypto market is set to see a surge in losses totaling over $629 million in the first half of 2024, double the amount from the previous year, analytics firm Cyvers reported. In an X post on August 22, the firm highlighted centralized exchanges as primary targets, signaling a significant shift in cyberattack focus.

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https://twitter.com/CyversAlerts/status/1826603243868233899

One of the most notable incidents occurred in May, when more than $300 million was stolen from one of Japan’s largest crypto exchanges, DMM Bitcoin, due to a compromised private key. Following the breach, Cyvers analysts highlighted the “urgent need for strong key management.” Improper access control was identified as the leading cause of attacks in Q2 2024, particularly affecting centralized exchanges.

Crypto recovery thrives amid evolving threats

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

While centralized exchanges have taken the brunt of the blow, decentralized finance protocols also face significant risks. The blockchain forensics firm emphasized the importance of real-time protection and monitoring to prevent further losses. Looking ahead, Cyvers warned of the rise of more sophisticated contract exploits, AI-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 had suffered a series of major attacks in July, resulting in losses of approximately $266 million. The largest breach involved one of India’s largest cryptocurrency exchanges, WazirX, which lost $230 million in a sophisticated attack allegedly carried out by North Korean hackers, leading to a temporary pause in withdrawals.