Cyvers: 70% of crypto hack losses are CeFi projects

Centralized platforms also account for a similar share of the total number of exploits

31.07.2024 - 14:05

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Last updated on Aug 6, 2024

What’s new? Centralized crypto projects (CeFi) account for 70% of total security incidents, both in terms of the number of exploits and the amount of money stolen, said Deddy Lavid, the co-founder and CEO of Web 3.0 security company Cyvers. He said the industry needs a more holistic approach to security.

Material by Cointelegraph

What else is known? As Layer 2 (L2) networks continue to evolve, Lavid believes it is especially important to secure entire blockchains, not just individual projects, and to pay attention not only to technological vulnerabilities but also to the human factors that can lead to exploits.

In Q1 2024, hackers stole $542,7 million worth of cryptocurrencies, a 42% increase compared to the same period in 2023.

The security of smart contracts has improved over the past year, prompting hackers to look for easier targets such as private keys. For example, more than 55% of assets were lost to leaks of private keys over the past year, while losses from smart-contract exploits fell by 92%, to $179 million. By comparison, in 2022, exploits brought a record $2,6 billion to hackers, according to a Merkle Science report.

While the success of hackers depends on each individual project, AI integration can strengthen security in the Web 3.0 sector, Lavid says. For example, integrating AI and real-time monitoring can keep ahead of threats.

Cyvers also announced a partnership with L1 blockchain startup Arthera Chain to provide end-to-end monitoring solutions.

Earlier this month, Indian centralized crypto exchange (CEX) WazirX lost $230 million in various digital assets in a hack. The incident was the second-largest this year.

Last month, there were more than 20 hacks with a total loss of $176,2 million, according to IS firm PeckShield. The figure was down by 54,2% compared to May. The largest was the $100,25 million hack of Turkish CEX BtcTurk.

Last November, two CEXs led by TRON blockchain founder Justin Sun — HTX and Poloniex — were hacked for a total of over $210 million.

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