Crypto Hacks Down 40% in Q3 2024; CEX Faces Major Losses

Immunefi's Q3 2024 report highlights a significant shift in the landscape of cryptocurrency security, revealing that losses from hacks have decreased by 40% compared to the same period last year. The total losses in the third quarter reached approximately $413 million, with centralized exchanges (CEX) bearing the brunt, accounting for nearly 75% of these losses.

The report indicates that CEX platforms experienced a staggering 66% increase in losses, primarily due to high-profile incidents involving major exchanges like WazirX and BingX. WazirX alone reported losses of $235 million following a hack in July, while BingX lost $52 million in September. In stark contrast, decentralized exchanges (DEX) saw a dramatic 79% reduction in losses, suggesting that they may be adopting more robust security measures.

Researchers at Immunefi concluded that the persistent vulnerabilities within centralized platforms are a growing concern. Despite fewer incidents targeting CEX, those that do occur result in more substantial financial damage, attributed to inadequate private key management and insufficient security audits.

Mitchell Amador, CEO of Immunefi, emphasized the need for improved security protocols within centralized finance systems to mitigate risks. As hackers increasingly target CEX due to their apparent weaknesses, the crypto industry faces a critical juncture in enhancing security practices across all platforms.