Nearly $739.7 Million in Cryptocurrencies Hacked in the First Quarter of 2024
In the first quarter of 2024, $739.7 million in crypto was stolen due to the costliest security threats, code vulnerabilities, and access control breaches. Cyvers has developed AI-based security solutions for real-time detection, with an emphasis on improving security and taking proactive measures in the Web3 ecosystem. Regulators are pushing for digital asset rules to protect investors and ensure markets function, highlighting a period for Web3 security.
The first quarter of 2024 has unfolded as a pivotal chapter in the Web 3.0 security narrative, marked by both notable achievements in threat mitigation and profound challenges.
Below are key takeaways from AI Web 3.0 security company Cyvers’ comprehensive analysis of Q1 2024 security incidents, highlighting emerging threats and underlining the importance of resilience within the ecosystem.
Hacked Cryptocurrencies: An Executive Summary
Amid the continued advancement of DeFi, DePIN (Decentralized Physical Infrastructure Networks), RWA (Real World Assets), and other blockchain-based applications, we have observed the corresponding escalation of sophisticated security threats.
Attack vectors have diversified, with code vulnerabilities leading to substantial financial repercussions and access control breaches proving exceptionally costly. These trends highlight the urgent need to improve security measures and increase surveillance in the Web 3.0 community.
Top Security Trends and Statistics
The total stolen value (TSV) in the first quarter of 2024 is approximately $739.7 million. January witnessed the highest number of hacks (27), followed by March (21) and February (18). Despite having the lowest number of hacks, February had a high financial impact, with around $405.3 million lost to hacks.
The average loss per hack was estimated at about $6.7 million, indicating how much is at stake in Web 3.0 security. The most common hack vector was code vulnerabilities, with 37 cases, which resulted in a loss of approximately $165.9 million.
There were 10 cases where hacks were detected exclusively by Cyvers, underscoring the importance of proactive security measures, sophisticated algorithms and continuous optimization. Three of these cases were among the top 10 hacks of the first quarter of 2024.
Regulatory Changes in Web3 Security
In the first quarter of 2024, the global digital asset landscape saw notable regulatory developments that have had a significant impact on Web 3.0 security.
PwC’s Global Crypto Regulatory Report highlights the continued evolution of digital asset regulation, suggesting that although substantial progress was made in 2023, the sector continues to face a significant regulatory workload.
These advances are crucial as they provide a structured framework for operations, improve global regulatory policies and help establish global prudential standards, potentially influencing EU Cryptoasset Market regulation and other international policies.
The SEC and Possible Rules to Regulate Cryptocurrency Exchanges
The United States Securities and Exchange Commission (SEC) was planning to publish new rules regulating exchanges and digital asset offerings, expected to comprehensively regulate digital asset offerings, along with guidelines for digital asset exchanges. These regulations not only aim to safeguard investors, but also guarantee the orderly functioning of digital asset markets.
For Cyvers, this evolution could present an opportunity to contribute to regulatory debates, leveraging its experience to guide policymaking that balances the need for security with the potential for innovation in the Web 3.0 space.
The first quarter of 2024 has therefore been a crucial moment for Web 3.0 security. Flagged by regulatory bodies around the world who have learned from past events to strengthen the sector’s defenses, as well as to establish a secure foundation for the booming digital economy.
By Leonardo Perez