The cryptocurrency industry faced significant security challenges in November 2024, recording 26 hacking and rug pull incidents. According to a comprehensive report by ImmuneFi, these events culminated in total losses amounting to $71,021,500. This figure marks the second lowest monthly loss for the year and represents a substantial 79% decrease compared to the staggering $343 million lost in November 2023.
Overall, the net losses for the calendar year stood at approximately $1.49 billion, reflecting a 15% decline in comparison to the same timeframe in 2023. The decrease in losses can be attributed to ongoing efforts in mitigating crypto-associated frauds and enhancing security protocols across the industry.
Major Incidents in November 2024
Two significant incidents in November contributed to the majority of the losses. Thala Labs experienced a substantial breach resulting in a loss of $25.5 million. Additionally, DEXX, a platform for trading memecoins, suffered a loss of $21 million. These incidents highlight the persistent vulnerabilities within decentralized finance (DeFi) platforms.
DeFi Dominance Over CeFi
Throughout November, DeFi platforms were overwhelmingly the most targeted, suffering the entirety of the losses across 26 attacks. Notably, there were no reported incidents within the centralized finance (CeFi) industry, underscoring the heightened risks associated with DeFi operations.
Hacks vs. Rug Pulls
Hacks were predominantly responsible for the financial losses, accounting for $70,996,200, or 99.96% of the total amount lost. A total of 24 hacks were reported during the month. In stark contrast, only $25,300 was lost to fraud and rug pulls, stemming from just two incidents. This disparity underscores the persistent threat of hacking within the crypto sector.
Most Targeted Chains
The BNB Chain emerged as the most frequently targeted blockchain, facing 14 hacking attempts and accounting for 46.7% of the total losses. Ethereum followed closely with nine incidents, representing 30% of the overall loss. Other blockchains such as Solana, Polygon, and Avalanche reported a single incident each, highlighting the universal nature of threats across the blockchain ecosystem.
Monthly Trends and Year-to-Date Analysis
The frequency and impact of catastrophic events showed a modest stabilization in November, marking a 4% reduction from October and indicating a downward trend in losses. Year-to-date analysis reveals that May witnessed the highest losses at $359 million, followed by July with $282 million. The November figures stand among the lowest for the year, suggesting improvements in cybersecurity measures.
Conclusion
The concerted efforts to enhance the security of the crypto ecosystem have resulted in a significant reduction in losses for November, as compared to the same period in 2023 and the previous month. However, the persistent targeting of DeFi platforms by cybercriminals underscores the urgent need for robust security measures and regulatory frameworks. As the year comes to a close, it is imperative for developers, users, and authorities to collaborate in creating a more secure cryptocurrency environment for 2025 and beyond.
