Crypto Hack Spree: $67 Million Loss Sparks Security Concerns In February 2024: Report

The unfortunate February 2024 event series shocked the crypto world’s financial system; as a result, the system lost $67 million. The main part of the misfortune involved hacks(accounted for 97.54% of the total damages), whereas the remaining came from frauds, which were not significant. The figure, however sad, came as a small relief compared to the January situation in which more crypto security measures were taken, or investors observed more caution.

According to the report by ImmuneFi, for the month under review, the crypto market was writhing in the consequences of hacks and scams to a whopping loss of $200 million. Sadly, the two entities that faced the most damage were PlayDapp, a cryptocurrency-based game platform, and FixedFloat, a decentralized exchange, which reported losses of $32.35 million and $26.1 million, respectively. Crypto casino Duelbits also suffered a major blow when it lost $4.6 million to bad actors’ activity. Collectively, these events amounted to the expenses of $63.05 million by the end of the month.

Crypto Landscape In February 2024

Ethereum, the leading smart contract platform, was the subject of a dozen attacks in February. On the other side, both BNB Chain and Bitcoin have also faced one hack. The decentralized finance (DeFi) sphere became the principal victim, with a staggering 97.54% of the losses occurring in this sector, while CeFi platforms remained generally unaffected.

The cumulative costs for the whole crypto segment of the industry increased to $200 million, equivalent to a 15.4% growth compared to the same timeframe for the past year. To illustrate, some cases were not included in the January and February news reports, like that on Seneca, LastPass users, MIM stablecoin, and the $112 million attack on the digital wallet of the co-founder of Ripple, Chris Larsen. Other than the exclusions, the loss for March could have amounted to $198.1 million to make a year-to-date total of $398.1 million.

The DeFi hacks of recent times prove how security in the crypto world is a matter of real concern that needs to be enhanced. This encompasses a joint effort between platforms and security experts to find the crack and fix it, making the digital asset system more resilient and better prepared in the event of similar malicious actions.