The Certik Web3 Report for Q2 2024 has revealed some disturbing statistics about the on-chain security breaches in the crypto environment.
A total of $688,102,941 has been lost across the 184 incidents. This means that a 37% increase in value was marked as lost, compared to Q1 2024. That said, the number of incidents has been reduced by 18%, which is a good chance.
Also Read: Cryptocurrency: 3 Coins To Buy If You’re A Die Hard Web3 Fan
On-Chain Breaches: Insights into Q2
The second quarter of 2024 was bumpy for the financial environment. It has produced significant losses due to a variety of security breaches.
67 incidents with a value of $433,688,871 were lost due to phishing attacks
16 major incidents of $170,064,635 were lost because of private key compromises
Ethereum has remained the most targeted blockchain with a total of 83 breaches that amounted to a total of $170,636,798 in losses. Some other chains, like BNB Chain, Arbitum, and Avalanche were also affected.
This situation showcases a very important aspect: security challenges are not confined to a single blockchain ecosystem.
Notable Incidents and Financial Loses
There were a few notable incidents in Q2, and here are some of the most important:
DMM Bitcoin exchange hack – $304.7 million lost
BtcTurk breach – $54 million Avalanche tokens converted to Bitcoin, and it was moved into separate wallets
Those are some substantial sums. $99,328,507 of the total lost funds were returned by resolving 7 separate incidents. This action has brought the Q2 losses to $588,774,434. The success of these strategies has given the company a bit of hope.
Also Read: Bitcoin and Altcoins Surging Following CPI Report – 5 Best Crypto to Buy Now
When combining the data from the Q1 report, the first half of 2024 doesn’t look too good. A total of $1,190,398,361 were lost across a whopping 408 on-chain security breaches in H1 2024.
As mentioned previously, the most used technique was phishing, which was responsible for the loss of $497,735,904 in 150 incidents.
This chart clearly shows how often phishing attacks took place in H1 2024, with 150 incidents, and a whopping $497.7 million losses. Private key losses were the second in the chart, with 42 incidents and a damage of $408.9 million. Code vulnerabilities also were on the rise, with 105 total incidents at $80 million in losses.
Also Read: Robinhood Considers Listing Crypto Futures in US & Europe
We can conclude by saying that the CertiK Web3 Report for Q2 2024 shows a critical need for an improved security setup for all cryptocurrencies in the ecosystem.
Because of this, the future of Web3 might depend on the industry’s ability to resolve these issues and have a more secure digital asset landscape.