Introduction
In 2024, hackers stole a lot of money from cryptocurrency projects. A new report from Cyvers shows that bad people took $2.3 billion from Web3 projects. Out of this, over half of the money—about $1.15 billion—came from projects on Ethereum. Let’s talk about why this happened, how it hurt the crypto world, and what people can do to stop it in the future.
Why Did Hackers Target Ethereum?
Ethereum is one of the most popular blockchains. Many people use it for DeFi, or decentralized finance, to trade and invest. This makes it hold a lot of money, so hackers saw it as a big target. Hackers didn’t target Ethereum alone. BNB Chain came next, with 24% of the stolen money. Other blockchains like Bitcoin, XRP, and Arbitrum lost smaller amounts 5%, 4%, and 3%, respectively.
How Did the Ethereum Hacks Happen?
Weak security caused most of the money to be stolen. In fact, hackers exploited 81% of systems that lacked strong locks to keep them out. This issue is called poor access control. The remaining 19% of losses happened because developers made mistakes in smart contracts. These contracts are like computer programs that run on blockchains. When not designed carefully, hackers find holes in them and steal money. For example, hackers exploited Ethereum-based project Muchables and took $97 million due to a mistake in its smart contract. Hackers also tricked people into sending $68 million to fake addresses.
Biggest Hacks of 2024
Some of the biggest attacks in 2024 were:
- DMM Bitcoin Hack: Hackers stole $305 million.
- PlayDapp Breach: This attack took $290 million.
- WazirX Exploit: $235 million was lost here.
All these hacks happened because systems weren’t protected well enough.
Did Anyone Recover Money?
Authorities recovered some of the stolen money, but they couldn’t recover all of it. In the first half of 2024, they returned $1.1 billion, with $620 million recovered in Q1 and $562 million in Q2. However, as the year went on, recovering money became harder. They managed to recover only $93 million in Q3 and just $25 million in Q4. This clearly shows how quickly hackers can hide stolen funds.
How Can We Stop Hacks?
The Cyvers report urges the implementation of better security measures immediately. Additionally, real-time monitoring and thorough testing for system weak spots could, therefore, help stop hackers early. Using smart tools like AI can also make things safer. Another report said that crypto hacks went up by 15% in 2024. Most attacks were on DeFi platforms, which means these systems need stronger protection.
Conclusion For Ethereum Hacks
Ethereum’s losses in 2024 show that cryptocurrency still has safety problems. The crypto world can stop hackers and protect people’s money by improving security and acting fast.
