News
02
Apr
hacks

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Q1 report: Crypto industry lost $336 million to hackers

Data security company Immunefi published a report about crypto hacks in the first quarter 2024. According to Immunefi, the crypto industry lost $336 million to cyber criminals. The biggest hack happened on the first day of 2024.

You can find the Q1-2024 report and previous publications at immunefi.com/research/.

Although $336 million sounds like a lot, it is 23 percent lower than the reference figure for 2023. The number of hacks also dropped from a year ago. In addition, approximately 22% of Q1 losses ($74 million) were recovered.

Below is a list of the biggest hacks of Q1 2024:

  • Orbit Bridge $81.7 million
  • Munchables $62.8 million
  • PlayDapp $32.4 million
  • FixedFloat $26.1 million
  • GMEE $15.0 million

The amounts are pretty small compared to the biggest hacks in history, which are hundreds of millions of dollars in size. By comparison, the biggest hack of 2023 was the $200 million Mixin hack. Cybercriminals mainly focus on the DeFi sector and token bridges between blockchains.

Munchables hacker returned stolen funds

Munchables is a weird hacking incident that happened last week. It is an NFT game that runs on the Blast blockchain. Blast is one of the most popular Ethereum Layer 2 solutions. It has grown rapidly in recent months, and the Blast platform already has liquidity worth almost three billion dollars.

The incident caused quite a stir in X. According to crypto detective ZachXBT, the four developers hired by the Munchables were likely one person. He is also the criminal who drained more than $60 million from a smart contract.

There was a heated discussion on X about whether or not the Blast blockchain should make a rollback. Rollback means the blockchain returns to the time before the hack, i.e., the incident is erased from the transaction history.

The pressure for a rollback became high when the hacker was linked to North Korea by ZachXBT. In the end, the case ended happily, as the hacker decided to return the funds just a couple of days later.

Orbit is the biggest hack of the year

The biggest hack of the first quarter happened right on the first day of the year. It was an attack on a cross-chain bridge called Orbit. Hackers drained more than 80 million dollars from the bridge’s smart contract. Orbit is a protocol launched in South Korea in 2018, focusing on building bridges between blockchains.

The funds from the Orbit hack have not been recovered.

In recent years, token bridges have been the number one target for hackers. They have many vulnerabilities, and lots of funds are tied up in them. A token bridge enables token transfer from one blockchain to another, such as Ethereum to Solana.

A token bridge works by locking the cryptos in a smart contract at the beginning of the bridge. A smart contract at the other end then releases the so-called wrapped tokens for your use. You can always transfer the funds back via the bridge as well.

In the 2022 Ronin token bridge hack, criminals stole as much as $600 million worth of cryptocurrency.

Note: Thousands of people become victims of crypto scams every year. Our info article on crypto scams will help you to avoid them!

AboutBitcoin Team

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