By
Godfrey Benjamin
July 3rd, 2024
Despite the 54.2% decrease in losses from hacks and exploits in June on a monthly basis, losses in the second quarter of 2024 increased by 115% compared to the same period last year.
The crypto sector witnessed a significant positive shift in June 2024 as net losses from hacks and exploits plummeted by 54.2% compared to May. According to data from blockchain security firm PeckShield, cybercriminals stole $176 million across 20 hacks in June, down from approximately $385 million in losses recorded in May. The attacks affected both the decentralized finance (DeFi) ecosystem and centralized exchanges (CEXs).
Major Exploits in June
PeckShield disclosed that the top five largest exploits for the month occurred in BTCTurk, a Turkish digital asset marketplace for Bitcoin (BTC) and other cryptocurrencies, Lykke, another crypto exchange, UwU Lend, Holograph, and Volocore. These five crypto service providers suffered a combined loss of substantial funds.
BTCTurk took the hardest hit with over $100 million lost from the exchange, followed by Lykke, which lost about $22 million to cybercriminals. Crypto lending protocol UwU Lend experienced a $19.4 million loss, while Holograph lost more than $14 million, and Volocore suffered nearly a $7 million loss.
When BTCTurk was attacked on June 22, initial estimates by blockchain investigators indicated a $55 million loss. However, PeckShield data later revealed that the exchange suffered losses exceeding $100 million by the end of the exploit.
Centralized Exchanges: The Primary Targets
PeckShield noted that centralized exchanges suffered the most significant exploits in June, with BTCTurk and Lykke being the primary targets. This contrasts with May, which saw the DeFi sector bearing the brunt of cyber attacks. June stood out as the worst month so far in 2024 in terms of hacks and exploits.
Cybercriminals employed various techniques, including hacks, flash loan attacks, market manipulations, rug pulls, and exit scams, to steal funds from the industry in May.
The biggest single attack in May occurred on the crypto exchange DMM, which was exploited for $305 million in different cryptocurrencies, including Bitcoin.
Quarterly Perspective
Despite the 54.2% decrease in losses from hacks and exploits in June on a monthly basis, losses in the second quarter of 2024 increased by 115% compared to the same period last year.
In 2023, the crypto industry lost approximately $220 million in the second quarter, whereas the same period this year recorded around $572 million in losses. According to PeckShield, centralized exchange hacks accounted for the majority of the quarter’s losses. Centralized protocols and exchange exploits resulted in losses totaling $401 million, making up 70% of the overall losses this quarter.
While losses from centralized exchanges were notably high this quarter, data shows that only a small fraction of attacks on these exchanges succeeded. Hackers targeted centralized platforms five times this quarter, in contrast to the 62 successful exploits on decentralized protocols.
The data suggests that while the industry is making progress in reducing monthly losses, the overall security of centralized exchanges remains a critical concern.