Info@NationalCyberSecurity
Info@NationalCyberSecurity

Crypto Hack Report Q1 2024: Trends, Losses, and Recovery Efforts | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #hacker


Imagine this: you wake up one morning, check your crypto wallet, and… everything is gone. Millions of dollars vanished into the digital abyss, stolen by unseen hackers. Sound like a nightmare? Welcome to the harsh reality of the crypto world in Q1 2024. Security breaches are on the rise, with losses skyrocketing by 54% compared to the same period last year.

In this article, we’ll crack open the latest security report, revealing the most common attack methods, the networks under siege, and even some success stories in recovering stolen funds.

Learn how to protect your digital assets and become an informed crypto citizen. Read on!

Comparative overview

Comparing the figures to the same period in 2023 reveals a stark reality: the total financial losses of $502,522,934 in Q1 2024 represented an alarming increase of 54% compared to the money lost in the same quarter of the previous year. While the percentage of losses went down by 3.8% relative to Q4 2023, the trend is still upward. This makes the crypto community worried – after all it is a troubling situation.

Month-wise breakdown

January was the worst month in terms of the quarter’s finances, carrying all the expenses for on-chain security incidents. A total of 193,132,537 was stolen through 78 cases during that quarter, which is tantamount to a negative outlook for the rest of the quarter. 

Month Amount lost in $ Incidents
January 193,132,537 78
February 160,385,286 59
March 149,005,111 86

The next months witnessed ups and downs, but the common denominator in these incidents was substantial during the quarter.

Primary attack vector

Private key compromises were the most common attack vector during Q1 2024. Although they constituted only 11.7% of all security incidents, they contributed to almost half the financial losses totalling $239,037,879. 

Type of attacks Amount lost in $ No. of incidents
Access control 78,684,261 15
Code vulnerability 42,572,893 47
Exit scams 68,314,135 34
Flash loan attack 37,703,331 30
Phishing attacks 64,019,052 83
Private key compromise 239,037,879 26
Others 229,461 2

This shows that a strong defense system is needed to protect the master keys used as the gates of the users’ digital assets.

Analysis by blockchain networks

Ethereum, a well-known blockchain platform, was the victim of the most security attacks during the quarter. There were 131 hacks, frauds, and exploits on the Ethereum network, leading to a cumulative loss of $139 million. 

Chain Amount lost in $ Incidents
Arbitrum 24,857,993 13
Avalanche 443,700 2
Base 1,176,995 3
Blast 68,080,000 3
BNB chain 26,351,558 36
Ethereum 139,837,142 131
Multiple chains 97,319,983 15
Optimism 927,190 2
Other 25,441,494 7
Polygon 730,948 3
Ripple 112,500,000 1
Solana 4,855,931 7

The very broadly spread and multi-purpose Ethereum platform makes it a promising target for malicious actors seeking to exploit vulnerabilities in the ecosystem. Arbitrum and multiple chain networks followed it.

Recovery efforts

Although the data of stolen crypto was horrifying, efforts were made to recover the lost funds. In the end, over $77,970,073 was successfully recovered and returned to those who had been defrauded by the crooks, which offered the same people a necessary glint of hope. 

However, most of the recovered funds came from the Munchables hack, where the hacker returned all the stolen crypto through successful negotiation, which was possible through everybody’s team effort in the ecosystem at the very end. 

Major exploits and losses

One of the most eminent losses was those from two particular hacks, OrbitBridge and Munchables, which together accounted for $144,480,000, taking up large portions of the total losses in Q1 2024. 

Orbit Bridge, the bridging protocol of the Orbit Chain cross-chain project, was exploited on January 1, 2024, in an $81 million attack. 

On the other hand, Munchables, an NFT game on the Ethereum layer 2 system called Blast was exploited on the 26th of March losing full access to its contract that enabled the withdrawal of the game’s assets worth a staggering $62M.

Conclusion:

The report on the on-chain security incident outcomes for Q1 2024 has shown that cryptocurrency security is still weak regarding stability and security. Meanwhile, the number of financial losses is a thriller, but this is also evidence of the necessity for strong security measures and strategies to defend digital properties. 

With the crypto market ecosystem advancing daily, stakeholders must remain vigilant and commit to collaboration whenever threats and vulnerabilities appear.

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