New data shows that nearly 80% of hacked cryptocurrencies experience long-term price declines, with CeFi emerging as the top target for cybercriminals in 2024.
A recent report by Immunefi, a leading on-chain security platform, highlights a grim reality for many cryptocurrencies affected by hacks. According to the report, over 77.8% of hacked cryptocurrencies suffer sustained price declines six months after the exploit, with more than half experiencing losses of over 50%. The findings underscore the severe and lasting impact that security breaches can have on digital assets.
Mitchell Amador, the founder and CEO of Immunefi, emphasized that the damage inflicted by hacks tends to be profound and long-lasting. “Infrastructure compromises tend to be the most devastating hacks in the cryptocurrency world,” Amador explained. “For example, a leaked private key will lead to the theft of all funds controlled by it.”
This report comes on the heels of the second-largest cryptocurrency hack of 2024, in which $230 million was stolen from the Indian cryptocurrency exchange WazirX. The incident has sparked renewed concerns over the security of centralized finance (CeFi) platforms, which have emerged as the primary target for hackers this year. According to Immunefi’s data, CeFi vulnerabilities have accounted for the majority of the $1.19 billion worth of digital assets stolen in 2024 so far, amounting to $636 million in losses.
Despite the overall negative trend, some cryptocurrencies demonstrate resilience in the aftermath of an exploit. Tokens belonging to larger ecosystems or with established teams, such as BNB Chain, SushiSwap, THORChain, Olympus, and Optimism, have shown a greater ability to recover. Amador attributes this resilience to the strong community support and significant buying power behind these projects.
However, the ongoing frequency and scale of crypto hacks continue to pose a significant barrier to the mass adoption of digital assets. As of February 29, 2024, over $200 million had been lost to hacks year-to-date, marking a 15% increase compared to the same period in 2023.
The report serves as a stark reminder of the critical need for robust security measures within the cryptocurrency space, especially as cybercriminals increasingly target the more vulnerable CeFi infrastructure.
