Cryptocurrency Hacking Losses Rise to $2.1 Billion by 2024, CeFi Hardest Hit

The cryptocurrency ecosystem suffered $2.1bn in losses due to hacking and fraud in the first three quarters of 2024, already exceeding the total losses for the whole of 2023, according to a report from Web3 cybersecurity firm Cyvers. Centralised finance (CeFi) platforms were particularly badly damaged, with a 984% year-on-year surge, highlighted by the $305 million bitcoin theft suffered by Japanese exchange DMM. In contrast, losses on decentralised financial (DeFi) platforms fell 25% year-on-year, but remain vulnerable due to the complexity of smart contracts.Cyvers called for technologies such as cross-chain security protocols and real-time threat detection, as well as stronger regulation to address emerging AI and quantum computing attacks.