Crypto Industry Losses Due To Hacking And Decreased 23% In The First Quarter Of 2024

JAKARTA - According to a research report released by blockchain security firm Immunefi on March 28, the crypto industry experienced a 23% decrease in losses due to hacking and fraud in the first quarter of 2024 compared to 2023.

Based on the report, the total amount of losses due to hacking and fraudulent activities in Q1 2024 amounted to around Rp5.34 trillion, down from Rp6.93 trillion in the same quarter in 2023.

The report identified 46 hacking incidents and 15 cases of fraud activities.

With nearly Rp1,588 trillion total value locked in Web3 protocol, decentralized financial platforms (DeFi) remain a significant target for hackers, accounting for all exploits identified by Immunefi on Q1, compared to zero for centralized financial platforms.

Two projects accounted for most of the losses, with a total of IDR 2.29 trillion, or 43% of the total. The biggest attack, valued at IDR 1.29 trillion, was aimed at the Orbit Bridge cross-chain bridge protocol on New Year's Eve. January saw the highest monthly loss in Q1, with a total of IDR 2.12 trillion.

Mitchell Amadir, CEO of Immunefi, highlighted the vulnerability of DeFi's platform to personal key breaches, stressing the need for enhanced security measures across code infrastructure and protocols.

The second-largest attack involved exploiting Rp983,276 billion in the Blast-based nonfungible token game, Munchables. However, the funds were successfully returned within 24 hours, as the hacker handed over the private key to the wallet containing the Munich assets.

Overall, IDR 1.17 trillion (22%) of the stolen funds from seven exploits on Q1 were recovered. The number of attacks decreased by 17.6%, from 74 in Q1 2023 to 61 in 2024.

Hacking accounted for 95.6% (Rp5.1 trillion) of losses through 46 incidents, while fraud, fraud, and rugby schemes accounted for 4.4% (Rp147,032 billion) in 15 incidents. Ethereum is the most frequently targeted chain before BNB Chain, with both networks accounting for 73% of the total combined losses.

Ethereum has the highest number of attacks, with 33 incidents, accounting for 51% of losses. BNB Chain suffered 12 attacks, representing 22% of the exploited funds. Other incidents were identified in Arbitrum, Solana, Optimism, Bitcoin, Blast, Polygon, Conflux Network, and Base.