- DeFi protocols remain prime targets, with 100% of November 2024 losses tied to them.
- Crypto hack losses dropped 15% in 2024, but attacks remain frequent and evolving.
- Complex smart contracts in DeFi pose significant security risks despite audits.
The cryptocurrency market has experienced some slight reprieve in crypto hacks this month. According to a recent report from Immunefi, a top on-chain security platform, the total amount of value lost to hacks and exploits has plummeted since last year.
The industry lost $1.49 billion from 209 incidents in the first eleven months of 2024. This was a 15% decrease from the same period in 2023. The number of incidents has revealed a troubling security issue in the industry. The report also notes that decentralized finance protocols remain highly vulnerable to attacks.
Losses have dropped to a notable $71 million across 26 incidents in November 2024. This is a 79% decrease from November 2023 and a 4% decrease from October 2024. DeFi protocols were the main targets of hackers. They accounted for 100% of the total losses in the month.
The Double-Edged Benefits of DeFi
The decentralized nature of DeFi offers plenty of advantages like increased transparency and increased accessibility. However, there are risks to it. Smart contracts are very complex and vulnerable. A single flaw in a smart contract can cause huge losses.
High-profile DeFi hacks, such as the $100 million theft from Poly Network in 2021, and the $600 million loss from the Ronin bridge in 2022 have shown why strong security must be implemented. While many projects have deployed security audits and bug bounty programs, security efforts in the DeFi space rarely keep up with the speed of innovation.
The November 2024 crypto landscape was marked by several significant attacks. Thala, a DeFi protocol, suffered a $25.5 million loss but later recovered. DEXX, a decentralized exchange, lost $21 million. PolterFinance, a lending protocol, fell victim to a $12 million exploit. DeltaPrime, which is a trading platform, lost $4.75 Million.
The Evolving Threat Landscape
Blockchain networks are always being attacked and exploited by hackers. The hackers keep changing tactics to dupe mostly new investors. In November 2024, the most exploited attack vector was smart contract vulnerability exploitation. The changing tactics of hackers should bring into focus the need to run rigorous code audits and security testing.
Another growing concern is also the rise of social engineering attacks. In these attacks, the hackers trick the victims into revealing secret information, such as private keys or seed phrases. Phishing and fake airdrops can result in major losses for unsuspecting users.
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