July 14, 2024
Latest Cryptocurrency News

Web3 Security in Crisis: $1.19 Billion Lost in H1 2024

The CertiK Web3 Security Report shows a massive $1.19 billion loss from onchain security incidents in the first half of 2024. A big chunk of these losses came from phishing attacks and compromises in private keys. Phishing alone made up almost $498 million.

https://twitter.com/CertiK/status/1808495939432153387

Ronghu Gu, co-founder of CertiK, emphasized the need for multifactor authentication like two-factor authentication (2FA) security keys to tackle these threats. He recommended that wallets that have substantial amounts of money should use hardware wallets or other secure key management solutions.

Graph showing various cyberattack types and the financial losses each has caused. Source: CertiK

Big Breaches: DMM Bitcoin and BtcTurk

One of the most significant security breaches in 2024 was the DMM Bitcoin attack in the second quarter, leading to a $304 million loss. This breach is one of the biggest crypto hacks ever.

The Japanese crypto exchange also experienced theft of 4,502.9 Bitcoin, causing them to bolster their security system to ward off future problems.

Additionally, the Turkish crypto exchange BtcTurk also got hit by a cyberattack on its hot wallets. This caused a loss of $90 million. Gu mentioned that these breaches show how attackers always test big crypto custodians’ defenses. He recommended implementing proactive security measures and having quick incident response team.

Graph showing the top 10 incidents and their associated financial losses. Source: CertiK

Regulatory Response: FIT21 Bill

To deal with these alarming security incidents, the United States brought in and passed the FIT21 bill. This new rule aims to boost protections for consumers and back innovation in the crypto sector. The bill got bipartisan support and is expected to make digital assets safer and more regulated in the U.S.

Despite the distressing report from CertiK, Gu said there’s some good news too. Even with around $385 million lost in crypto hacks in May, exploits and hacks dropped by 54.2% in June, with losses at $176.2 million according to PeckShield data. Gu also added that such big losses might be normal right now, “simple measures” like 2FA can improve Web3 security at manifold levels.

Image by rawpixel.com on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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