Crypto Hacks Surge: CeFi Platforms Lose $413M in Q3 2024

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Centralized Finance platforms are under attack as Ethereum and BNB Chain remain key targets.

Immunefi’s Q3 2024 report revealed that hackers and fraudsters targeted the crypto market, costing the industry $412.9 million; CeFi platforms were the most affected. 

Among the total losses, 31 hacking-related losses totalled $409.9 million, which is 99.25% of the total hacking losses. The other $3 million was gotten through embezzlement in three particular ways. This is 40% less than the total losses recorded in Q3 2023, which were $685.9 million. Unfortunately, the particular aggression of individual attacks has augmented, especially in CeFi platforms.

WazirX and BingX , Badly Hit 

Two major crypto exchanges were affected, accounting for 69.5% of the total losses recorded in Q3. Indian exchange WazirX suffered the most, losing $235 million in a hack in July. 

Singapore’s BingX lost $52 million in September, and these two incidents alone cost $287 million, which is an example of the growing weaknesses of centralized exchanges.

CeFi vs. DeFi: A Growing Shift in Targets

The same report from Immunefi reveals that centralized finance (CeFi) platforms contributed 74.8% of the overall losses in the third quarter of 2024. This means CeFi-related losses increased by 66.4% compared to Q3 2023 figures. 

On the other hand, the decline in DeFi losses reached 79.2%, accounting for 25.2% of the total. This move implies that hackers are progressively aiming at more centralized systems, which seem to have less decentralization and security review than most of DeFi projects.

Ethereum and BNB Chain: Top Targets for Hackers

Ethereum was the most prominent blockchain again, as 15 of the hacks were recorded as successfully damaging, accounting for 44.1% of all hacks. 

Second on the list was BNB Chain, with eight hacks, which equalled 23.5% of all reported hacks. Base, Blast, Solana, and Arbitrum blockchains did not receive as many attacks, but they were not shielded from hackers either.

Mitchell Amador Comments on the Growing Threat

Immunefi’s CEO, Mitchell Amador, highlighted the growing risks in centralized finance, stating: We’re seeing fewer incidents targeting CeFi, but these incidents often result in more severe losses due to poor private key management and a lack of rigorous audits. In contrast, DeFi platforms, while still targeted, have seen a reduction in losses due to enhanced security practices.” Amador highlighted the necessity of implementing level centralization to enhance the security network but about managing private keys in particular.

Fund Recovery Remains Limited

Though $14.9 million was returned in two incidents in Q3, a very low ratio of 3.6%, which declined greatly compared to Q2 2024, with an 8.9% ratio of the total stolen amount. 

The continuous effort to regain lost money also prevents the growth of securities and the cooperation of crypto platforms with law enforcement agencies.

Thus, the overall figure is lower than in Q3 2023; however, the trend of increasing attention to centralized platforms such as WazirX and BingX can make hackers change their approaches.