In a notable change, June witnessed a significant reduction in cryptocurrency losses due to hacks, down 54.2% from the previous month, according to the latest report. data from PeckShield.
This drop in cyber thefts indicates an evolution in the cryptocurrency security space, even as the industry faces ongoing challenges.
Major incidents of June and wider implications
Data from PeckShield, a reputable cryptocurrency analytics firm, revealed that there were about 20 hacking incidents in June, resulting in losses of nearly $176 million. This is a substantial drop from May’s substantial losses of $385 million.
Among the notable violations, the Cryptocurrency exchange BtcTurk suffered the largest single exploitlosing more than $100 million in assets. It was followed by centralized exchange Lykke, which suffered a $22 million setback, and decentralized finance (DeFi) lending protocol UwU Lend, which lost $19.4 million.
#PeckShield Alert In June 2024, there were over 20 hacks in the cryptocurrency sector, resulting in losses of approximately $176.2 million. This is a 54.2% decrease from May 2024 (with approximately $385 million in profits for hackers).#High 5 tips:#Btctruk: $100.25 million (CeFi)#Lykke: $22 million (CeFi)#UwULend:19.4… pic.twitter.com/83XzWf82kw
— PeckShieldAlert (@PeckShieldAlert) July 1, 2024
Despite the decline in June, the second quarter was generally tumultuous, with Approximately $572.68 million embezzled through hacks and scams—an increase of 70.3% compared to the first quarter and 112% year-on-year, according to Immunefi data.
Immunefi founder Mitchell Amador noted in the report:
This quarter shows how infrastructure breaches can be the most devastating hacks in the crypto space, as a single breach can result in millions of dollars in damages. This was demonstrated during this quarter, where losses increased mainly due to hacks targeting CeFi infrastructure, surpassing DeFi, despite a lower number of hacks in this sector. Robust measures to protect the entire ecosystem are crucial.
Interestingly, although May was the month with the highest losses, with a total of $358.5 million, there was a silver lining as nearly $28.7 million was recovered. through several incidentsincluding those involving Bloom, ALEX Lab, Gala Games and YOLO Games.
Emerging threats and defensive strategies
The quarter also highlighted the growing threat posed by deepfakes. These “sophisticated” AI-generated imitations are becoming a major challenge within the industry. crypto spaceespecially in fraud operations.
Exchanges are increasingly turning to advanced solutions like those offered by Sumsub, a leading KYC verification provider. Bitget, for example, has partnered with Sumsub to bolster its defenses, with the goal of protecting its users worldwide.
Gracy Chen, CEO of Bitget, said:
We urgently need new industry security standards and an industry protocol for protecting users from this threat. Through our collaboration with Sumsub, we aim to continuously develop new forms and standards of security, sharing critical data to improve the process.
Furthermore, this partnership represents a proactive approach to solve the deepfake dilemma, which saw a 217% increase in detections in the crypto sector from Q1 2023 to Q1 2024, according to Bitget report.
Featured image created with DALL-E, chart by TradingView
