📰 Table Of Contents
Web3 Security Report: Q1 2024 Overview
The first quarter of 2024 has seen significant activity in the Web3 space, with a total of $336 million lost to hackers and fraud. Despite the alarming numbers, there has been a 23% decrease compared to the same period in 2023, as reported by Immunefi.
Capital Lockup and Hacker Opportunities
As of March 2024, approximately $100 billion in capital has been locked across various Web3 protocols, creating an attractive opportunity for blackhat hackers to exploit vulnerabilities.
Recovered Funds and Specific Incidents
Notably, $73,885,000 has been recovered from stolen Web3 capital in seven specific situations. The Munchables exploit accounted for $62 million, while the Seneca exploit recovered $5.3 million.
Details of Web3 Incidents
The report identified a total of 61 incidents where blackhat hackers exploited crypto protocols or performed rug pulls in the Web3 space, resulting in the loss of $336,311,217 in Q1 2024.
Hack vs. Fraud Breakdown
- Hacks: $321,645,400 across 46 incidents
- Fraud: $14,665,817 across 15 incidents
DeFi and Ethereum Trends
Decentralized finance (DeFi) continues to be the primary target for exploits, representing 100% of total losses in Q1 2024. Ethereum remains the most targeted chain, with 33 incidents, followed by BNB Chain with 14 incidents.
Top Affected Chains
- Ethereum: 51% of total losses
- BNB Chain: 22% of total losses
- Other chains affected include Arbitrum, Solana, Optimism, Bitcoin, Blast, Polygon, Conflux Network, and Base
Major Losses and Exploits
Two projects accounted for a significant portion of the losses in Q1 2024. Orbit Bridge lost $81.7 million in January, while Munchables suffered a $62.8 million exploit in March.
Hacks vs. Fraud Comparison
Hacks remain the leading cause of fund loss in Q1 2024, with 95.6% of total losses attributed to hacks, compared to 4.4% from fraud incidents.
Immunefi’s Role and Impact
Immunefi, a bug bounty and security services platform, plays a crucial role in protecting Web3 user capital. With over $155 million in available bounty rewards, the platform has saved over $25 billion in user funds.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
