Ethereum

2024

WazirX

<p><strong>Centralized Finance platforms are under attack as Ethereum and BNB Chain remain key targets.</strong></p>  
<p>Immunefi’s Q3 2024 <a href="https://downloads.ctfassets.net/t3wqy70tc3bv/4wrLxaFvKa4NQXA43uPWri/80111984054b3b959e4e2a918537f233/Immunefi_Crypto_Losses_in_Q3_2024.pdf" rel="noopener noreferrer nofollow">report </a>revealed that hackers and fraudsters targeted the crypto market, costing the industry $412.9 million; CeFi platforms were the most affected.&nbsp;</p>  
<figure class="wp-block-image"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc-NIfelKmCCHtzeFm_rRRIglRt0FG4mb16xlg7iqCXlQ1wwJY5F711jedbjZCQWKhN1colvy3rTPI2Fj2sbUfGbRN52y-hv58kHchKb4uJqo1Sp4ZMPnnPhTjB2rR5FFdYUxkdUH4bbgQC5CkQTuo7wcs?key=JiQBlxRj94xkqL3_xjwi9g" alt="">
 <figcaption class="wp-element-caption">
  Source: Immunefi
 </figcaption>
</figure>  
<p>Among the total losses, 31 hacking-related losses totalled $409.9 million, which is 99.25% of the total hacking losses. The other $3 million was gotten through embezzlement in three particular ways. This is 40% less than the total losses recorded in Q3 2023, which were $685.9 million. Unfortunately, the particular aggression of individual attacks has augmented, especially in CeFi platforms.</p>  
<h2 class="wp-block-heading" id="h-wazirx-and-bingx-badly-hit"><strong>WazirX and BingX , Badly Hit&nbsp;</strong></h2>  
<p>Two <span style="margin: 0px;padding: 0px">major crypto exchanges were affected, accounting for 69.5% of the total losses recorded in Q3. Indian exchange&nbsp;<a href="https://coinpedia.org/news/wazirx-news-singapore-high-court-grants-temporary-relief-after-devastating-hack" target="_blank" rel="noopener noreferrer nofollow">WazirX&nbsp;</a>suffered the most, losing</span> $235 million in a hack in July.&nbsp;</p>  
<p>Singapore’s <a href="https://coinpedia.org/uncategorized/bingx-restores-select-crypto-withdrawals-after-52m-hack" rel="noopener noreferrer nofollow">BingX </a>lost $52 million in September, and these two incidents alone cost $287 million, which is an example of the growing weaknesses of centralized exchanges.</p>  
<h2 class="wp-block-heading" id="h-cefi-vs-defi-a-growing-shift-in-targets"><strong>CeFi vs. DeFi: A Growing Shift in Targets</strong></h2>  
<p>The same report from Immunefi reveals that centralized finance (CeFi) platforms contributed 74.8% of the overall losses in the third quarter of 2024. This means CeFi-related losses increased by 66.4% compared to Q3 2023 figures.&nbsp;</p>  
<p>On the other hand, the decline in DeFi losses reached 79.2%, accounting for 25.2% of the total. This move implies that hackers are progressively aiming at more centralized systems, which seem to have less decentralization and security review than most of DeFi projects.</p>  
<h2 class="wp-block-heading" id="h-ethereum-and-bnb-chain-top-targets-for-hackers"><strong>Ethereum and BNB Chain: Top Targets for Hackers</strong></h2>  
<p>Ethereum was the most prominent blockchain again, as 15 of the hacks were recorded as successfully damaging, accounting for 44.1% of all hacks.&nbsp;</p>  
<p>Second on the list was BNB Chain, with eight hacks, which equalled 23.5% of all reported hacks. Base, Blast, Solana, and Arbitrum blockchains did not receive as many attacks, but they were not shielded from hackers either.</p>  
<h2 class="wp-block-heading" id="h-mitchell-amador-comments-on-the-growing-threat"><strong>Mitchell Amador Comments on the Growing Threat</strong></h2>  
<p>Immunefi’s CEO, Mitchell Amador, highlighted the growing risks in centralized finance, stating: We’re seeing fewer incidents targeting CeFi, but these incidents often result in more severe losses due to poor private key management and a lack of rigorous audits. In contrast, DeFi platforms, while still targeted, have seen a reduction in losses due to enhanced security practices." Amador highlighted the necessity of implementing level centralization to enhance the security network but about managing private keys in particular.</p>  
<h2 class="wp-block-heading" id="h-fund-recovery-remains-limited"><strong>Fund Recovery Remains Limited</strong></h2>  
<p>Though $14.9 million was returned in two incidents in Q3, a very low ratio of 3.6%, which declined greatly compared to Q2 2024, with an 8.9% ratio of the total stolen amount.&nbsp;</p>  
<p>The continuous effort to regain lost money also prevents the growth of securities and the cooperation of crypto platforms with law enforcement agencies.</p>  
<p>Thus, the overall figure is lower than in Q3 2023; however, the trend of increasing attention to centralized platforms such as WazirX and BingX can make hackers change their approaches.</p>

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