Web3 Losses Reduced by 23% in Q1 2024, Potential $100 Billion Target for Hackers – Immunefi

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.