Crypto Hacks in June Saw Significant Decrease, Losses Tally $176 Million
Recent data from PeckShield indicates a notable downturn in crypto hacks for June, registering total losses of $176 million. This marks a substantial 54.2% reduction from the previous month, where thieves had managed to siphon a staggering $385 million.
PeckShield’s report details over 20 security breaches occurred during the month. The largest incident targeted BtcTurk, a crypto exchange, resulting in the theft of over $100 million in crypto assets. Following closely was Lykke, a UK-based centralized exchange, which reported a $22 million loss. Additionally, the decentralized finance (DeFi) sector was hit, with the UwU lending protocol compromised for $19.4 million, ranking as the third-largest exploit of the month.
Comparatively, May witnessed the highest losses of 2024, primarily driven by the $305 million hack of Japan-based DMM crypto exchange.
The predominant methods used in these attacks included flash loan exploits, exit scams, and various technical vulnerabilities. Despite these challenges, blockchain security experts managed to recover approximately $96.2 million, offering some consolation to the crypto community.
Looking at broader trends, blockchain security platform Immunefi’s research highlights that Q2 of 2024 saw a staggering $572 million in losses from crypto scams, more than doubling the $220 million recorded during the same period in 2023. Centralized exchanges bore the brunt, accounting for the majority of losses, with the DMM Bitcoin and BtcTurk hacks alone responsible for over 62% of the quarter’s total losses.
DeFi protocols, while experiencing more frequent incidents, saw a decline in losses to $171 million, down 25% from Q2 2023. The Ethereum and BNB Smart Chain networks were primary targets, constituting 71% of total losses. Notably, Ethereum layer 2 solutions like Arbitrum also saw increased attention from malicious actors.
Despite these challenges, some positive outcomes were reported, with protocols such as Gala Games, Alex Labs, Bloom, and Yolo Games successfully recovering most of their lost assets. However, these recoveries represented only about 5% of the total losses for the quarter.
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