Published on juli 9, 2024, 12:37 am
Image source: Fox News
```json [ { "TLDR": "Cyvers reports a 900% increase in stolen funds on centralized exchanges in Q2 compared to the previous year, totaling nearly $1.4 billion. Attacks concentrated on centralized exchanges due to asset concentration and security vulnerabilities. Phishing attacks were a significant factor, with losses from access control breaches reaching $490 million. Decentralized finance protocols showed resilience but warned of exploit risks. Despite some fund recoveries, 76% of stolen funds remain unrecovered as threats evolve, including AI and quantum computing dangers." } ] ```
Data from cybersecurity firm Cyvers reveals a staggering 900% increase in stolen funds on centralized exchanges in the second quarter compared to the previous year. The total amount of stolen cryptocurrency funds this year is nearing $1.4 billion, with centralized exchanges becoming a prime target for cyber exploits.
In the second quarter of 2024, total crypto losses exceeded $600 million, representing a doubling from the same period in the preceding year. This surge was predominantly fueled by a substantial 900% rise in losses on centralized exchanges, as highlighted in Cyvers’ mid-year Web3 security report.
Cyvers emphasized a notable shift in attack patterns during this quarter. Centralized exchanges bore the brunt of major incidents, while decentralized finance (DeFi) protocols showcased enhanced resilience. The concentration of assets in centralized platforms and potential security vulnerabilities might explain this trend.
Access control breaches, notably through phishing attacks, contributed significantly to stolen funds amounting to approximately $490 million alone in Q2. In contrast, losses from smart contract exploits were less prominent, totaling under $70 million during the same period.
Decentralized finance protocols have demonstrated prompt actions by freezing compromised smart contracts to safeguard users. However, Cyvers warned about lingering exploit risks due to hackers continually discovering new loopholes within intricate contracts. The report also underscored the rising threat posed by cross-chain bridges, referencing a substantial exploit worth $1.44 million involving XBridge in April.
Despite some success stories of victims recovering lost funds—total recoveries increasing by 42% in Q2 compared to the prior year—a significant portion, around 76%, of stolen funds remains unrecovered. As threats evolve, users within the Web3 space need to remain vigilant against emerging risks such as those posed by artificial intelligence and quantum computing that could equip hackers with advanced tools to bypass existing security measures.
The recent breach at Japanese cryptocurrency exchange DMM and the attack on Turkish platform BtcTurk serve as poignant examples within Cyvers’ report highlighting the ongoing challenges faced by users and entities operating within the cryptocurrency landscape.
Original article posted by Fox News
