Web3 Security Threats Rise: $2.3 Billion Stolen in 2024

According to a recent report, web3 security threats have resulted in approximately $2.3 billion in losses, with Ethereum accounting for more than half of the total losses. The report highlights the importance of robust security protocols in protecting user assets and preventing such incidents.

Blockchain Distribution of Stolen Funds

The report reveals that 51% of the stolen funds came from Ethereum-based projects, largely due to its role as the leading blockchain for DeFi and its extensive liquidity. The BNB Chain was the second most targeted blockchain, accounting for 24% of losses, while Bitcoin, XRP, and Arbitrum accounted for 5%, 4%, and 3%, respectively.

Common Causes of Web3 Security Threats

Access control failures accounted for 81% of the total funds lost in 2024, linked to weak authentication and permission mechanisms. Smart contract vulnerabilities, while responsible for 19% of the losses, exploited loopholes in code to siphon funds.

Top Web3 Hacks of 2024

The top three biggest Web3 hacks of 2024 included:

  • The $305 million DMM Bitcoin exploit
  • The $290 million PlayDapp breach
  • The $235 million WazirX attack

Each of these incidents stemmed from vulnerabilities in access control mechanisms. Other multi-million dollar incidents include the exploit of Ethereum-based Muchables, which lost $97 million after a rogue developer exploited smart contract vulnerabilities. Meanwhile, address poising attacks accounted for $68 million in losses.

“Many Web3 projects still aren’t implementing proper security protocols to protect user assets. Even a single flaw in a smart contract can be catastrophic, and 2024 was proof of that.”

Quarterly Crypto Losses and Recovery Efforts

Crypto losses grew quarter on quarter through 2024, with Q3 being the most damaging, accounting for $669 million in losses. Q4 saw the least number of incidents, with losses amounting to $130 million. Recovery efforts bore mixed results, with $620 million reclaimed in Q1 and $562 million in Q2. However, recoveries dropped sharply in the latter half of the year, with just $93 million recovered in Q3 and $25 million in Q4.

Recommendations to Combat Web3 Security Threats

To combat the growing threats, the report urged for the standardization of continuous monitoring and real-time vulnerability testing and advocated for the use of AI-powered detection mechanisms. Additionally, the report emphasized the importance of early intervention in recovering stolen assets.

For more news on the latest web3 security threats and cryptocurrency trends, visit Global Crypto News.

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