In April 2024, Web3 experienced a loss of over $53 million in cryptocurrency due to hacking and fraud across 21 incidents. This represents a 46% decrease compared to the previous period, where the losses totaled $98.6 million. The majority of the losses in April were attributed to an attack on Hedgey Finance, where $44.6 million was stolen, highlighting decentralized finance (DeFi) as a major target for hackers. Other notable exploits included Grand Base ($2 million) and Wilder token ($1.4 million), while centralized finance (CeFi) did not experience any attacks during this period. Ethereum remained the primary target for hackers in the Web3 ecosystem, with 15 attacks accounting for 57.7% of all losses, followed by BNB with six attacks and 23.1% of total losses.
Hacks were the main cause of losses in April, totaling over $50 million across 12 incidents, while fraudsters stole just above $3 million in 9 incidents. Ethereum and BNB remained the primary targets for hackers, with Ethereum recording 15 attacks and BNB facing six attacks. Other chains such as Arbitrum, Optimism, Polygon, and Solana also witnessed hacking incidents during this period. Overall, the losses in April contributed to a total year-to-date (YTD) loss of $401,326,044, representing a 25% decrease compared to the same period last year, which recorded $536.1 million in losses. The decrease in losses in April compared to the previous month can be attributed to various factors, including increased security measures and awareness among users and platforms. Immunefi, a crypto-focused bug bounty platform, offers over $157 million in bounty rewards and has paid out more than $95 million in bounties while saving $25 billion in user funds.
The decrease in losses in April 2024 compared to the previous month can be seen as a positive trend in the Web3 ecosystem, indicating improvements in security measures and response mechanisms to address hacking and fraud incidents. The attack on Hedgey Finance, which accounted for a significant portion of the losses in April, highlights the vulnerability of DeFi platforms to exploitation by hackers. Ethereum and BNB remained popular targets for hackers, with multiple incidents reported on these chains. The overall decrease in losses year-to-date compared to the same period last year demonstrates progress in safeguarding user funds in the crypto space. Immunefi’s efforts in offering bug bounty rewards and mitigating potential risks have contributed to reducing losses and increasing security within the Web3 ecosystem.
Moving forward, it is essential for platforms and users in the Web3 ecosystem to remain vigilant and proactive in addressing cybersecurity threats and vulnerabilities. Implementing robust security measures, conducting regular audits, and educating users about best practices in securing their assets are crucial steps in preventing future incidents of hacking and fraud. Collaboration between stakeholders, including developers, security experts, regulators, and users, is key to enhancing the overall security posture of the Web3 ecosystem. By fostering a culture of transparency, accountability, and resilience, the industry can better protect user funds and uphold the integrity of decentralized finance platforms. With ongoing efforts to strengthen security measures and response mechanisms, the Web3 ecosystem can continue to evolve and thrive in a secure and trustworthy manner.
