Crypto Losses in Q1 2024 Present a 23% Decrease, Signal Positive Growth

Crypto losses have gone down significantly in the first quarter of 2024, according to a research published by Immunefi. This comes after hacks and losses decreased throughout 2023, after hitting an all time high in 2024. However, hacks still remain a prominent issue for many in the market.

Crypto Losses Topple in First Quarter

According to Immunefi, compared to Q1 2023, the total number of losses decreased by 23.12% to $437.5 million, which is a significant decrease in Q1 2024. The report also highlights that this year’s January saw the most loss overall. From 74 attacks in Q1 2023 to 61 attacks in Q1 2024, there was a 17.57% drop in attacks as well.

Data further showed that Comparing Q1 2024 to Q1 2021, Ethereum topped BNB Chain once more and emerged as the most sought-after chain. Funds recovery has shown to be less successful in Q1 2024 than it was in the prior quarter. Of the money that were taken, 22% have been found so far; in Q1 of 2023, 40.5% were found.

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Tether’s Involvement in Illicit Crimes

The new Immunefi report comes after previously Bloomberg shed light on the fact that Tether was the most widely used stablecoin for illicit activity in the cryptocurrency field last year. This was also a period during which the overall volume of illicit transactions in the space dropped as more businesses involved in the sale of digital assets came under investigation. The USDT token was linked to $19.3 billion in illegal activities in 2023 as opposed to $24.7 billion in 2022, per a report and email exchanges from blockchain analytics firm TRM Labs.

Hacks and Ransomware Still an Issue

In Q1 2024, there was a total of $321,645,400 lost as a result of 46 distinct hacking incidents. Comparing these figures to Q1 2023, when hacking losses reached $418,589,089, shows a 23.1% drop. However, hacks still constitute 95% of crypto losses cases. This indicates that hacks are still a huge problem for the market.

A Chainalysis report further states that for some illicit cryptocurrency operations, such ransomware extortion and darknet market sales, Bitcoin remains the main platform. In 2023, earnings from two of the most well-known forms of bitcoin crime—ransomware and darknet markets—rose in contrast to overall trends. The uptick in ransomware revenue is depressing after the sharp declines we documented last year. It does, however, seem to indicate that ransomware attackers might have adjusted to businesses’ heightened cybersecurity—a development we first reported on this year.

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