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Highlights
- The crypto market witnessed a loss of $1.5 billion this year due to scams.
- Ethereum, Bitcoin, and XRP registered the highest losses.
- In addition, 90% of the losses haven't been recovered.
The first half of 2024 has been marked by a surge in major hacks within the cryptocurrency space. Ethereum (ETH), Bitcoin (BTC), and XRP have led the crypto scam losses amounting more than $1.5 billion. This year, over 200 significant incidents have resulted in approximately $1.56 billion in losses.
Crypto Scam Losses Hit $1.5B
According to Peck Shield Alert data, only $319 million of lost crypto funds have been recovered. Moreover, the losses this year represent a staggering 293% increase compared to the same period in 2023, where losses amounted to $480 million.
Furthermore, DeFi protocols have been the primary targets for hackers. They account for 59% of the total stolen value. Over 20 public chains experienced major hacks during this period. Moreover, Ethereum, Bitcoin, and XRP topped the list for the amount lost via crypto hacks.
In addition, Ethereum and BNB Chain were the most frequently targeted, each accounting for 31.3% of the total hacks. Meanwhile, Arbitrum followed with 12.5% of the attacks. One of the most significant incidents occurred on June 3, 2024.
DMM Bitcoin, a major Japanese cryptocurrency exchange, reported a substantial breach. The attackers stole 4,502.9 BTC, worth over $300 million at the time. This incident highlighted vulnerabilities within exchanges, especially those handling large volumes of digital assets.
Also Read: XRP News: Whale Shifts 63M Coins As Ripple Strengthens Case
Major XRP, ETH, BTC Hacks
A week after the DMM Bitcoin attack, on June 10, UwU Lend, a decentralized finance (DeFi) lending protocol, was compromised. The breach led to a loss of approximately $19.3 million in digital assets. This hack underscores the ongoing risks associated with DeFi platforms, which often operate with less regulatory oversight. The platform then offered $5 million reward for catching the hacker.
Earlier in the year, on February 3, 2024, Chris Larsen, co-founder of Ripple, confirmed a major security breach involving his personal wallets. Initially, there were rumors that Ripple itself was targeted. However, Larsen clarified that the hack involved his digital wallets and not Ripple’s corporate assets.
The hackers managed to transfer a whopping 213 million XRP tokens, valued at approximately$112.5 million. Moreover, on-chain detective ZachXBT first alerted the community to the suspicious transactions. In response to the theft, Larsen and various crypto exchanges took swift action to mitigate the impact.
Multiple exchanges, including MEXC, Gate, Binance, Kraken, OKX, HTX, and HitBTC, collaborated to freeze a significant portion of the stolen funds. Binance alone froze $4.2 million worth of XRP to aid the investigation.
Moreover, on April 2, 2024, FixedFloat, a Bitcoin Lightning-based exchange, experienced a security breach. Unauthorized transactions led to financial losses exceeding $3 million. This incident highlighted recurring security issues for FixedFloat, following a similar breach earlier in the year.
The company also faced significant challenges in securing its platform against repeated attacks. Moreover, in February, hackers stole $26 million worth of Ethereum and Bitcoin from FixedFloat. These digital assets were then dumped to exchanges to realize profits.
Also Read: Ethereum Leads Bitcoin By 2x In Network Fee Revenue, Thanks to Layer-2s
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