In April 2024, Web3 experienced a loss of over $53 million to hackers across 21 incidents, with a 46% decrease compared to the previous period, according to a report by Immunefi. Specifically, $53,074,827 was lost to hacks and frauds last month, with the majority of the loss attributed to an attack on Hedgey Finance, resulting in a $44.6 million theft. Decentralized finance (DeFi) continues to be the main target for exploiters, with other high-profile exploits including Grand Base and Wilder token. Centralized finance (CeFi) did not experience any attacks in April, highlighting the vulnerability of DeFi platforms to hacking attempts.
Hacks were the main cause of losses in April, accounting for more than $50 million across 12 incidents, while fraudsters stole just over $3 million in 9 incidents. Ethereum and BNB were once again the primary targets for hackers last month, with Ethereum seeing 15 attacks and 57.7% of all losses across chains, and BNB suffering 6 attacks representing 23.1% of total losses. Other chains targeted included Arbitrum, Optimism, Polygon, and Solana, each experiencing one or two incidents. The prevalence of hacks targeting Ethereum and BNB underscores the importance of security measures for popular blockchain platforms.
Year-to-date (YTD) total losses in 2024 amount to $401,326,044, which represents a 25% decrease compared to the same period last year when losses totaled $536.1 million. April 2024 also saw a significant decrease in losses compared to the previous month, with $53 million lost compared to $133,235,200 in March. Immunefi, the bug bounty platform, offers over $157 million in bounty rewards, having paid out more than $95 million in bounties and saved $25 billion in user funds. These efforts to incentivize ethical hacking and improve security across Web3 platforms are crucial in mitigating the risk of future attacks and safeguarding user funds.
The report highlights the ongoing threat posed by hackers to the Web3 ecosystem, with DeFi platforms remaining a primary target due to their decentralized nature and potential for lucrative thefts. Immunefi’s data underscores the importance of robust security measures and proactive risk management strategies for both decentralized and centralized finance platforms. The decrease in total losses compared to previous periods indicates progress in enhancing security protocols and raising awareness about cybersecurity risks in the crypto space. Continued investment in bug bounty programs and security audits will be essential in strengthening the resilience of Web3 infrastructure against evolving threats from malicious actors.
Moving forward, collaboration between blockchain developers, security experts, and regulators will be key in addressing vulnerabilities and enhancing the security of Web3 platforms. Heightened vigilance, ongoing security audits, and regular updates to security protocols are essential in safeguarding user funds and maintaining trust in decentralized financial systems. As the crypto ecosystem continues to evolve, the importance of security best practices and proactive risk management cannot be overstated. By prioritizing security and investing in robust security measures, Web3 platforms can mitigate the risk of hacking incidents and build a more secure and resilient financial ecosystem for users and investors.
