In 2024, losses from crypto hacks have already exceeded the total for all of 2023, setting a new record. The rise in cyberattacks shows the growing dangers in the space and the need for urgent solutions.

According to a report shared exclusively with BeInCrypto, Cyvers was crucial in detecting all reported crypto attacks in Q3 2024, with about half of these caught only by their system. Using AI-powered monitoring, Cyvers’ real-time alerts helped stop further financial losses, showing how important advanced tools are in protecting digital assets.

Crypto Hacks in 2024 Hit Record Highs, Exposing Major Security Weaknesses

The first three quarters of 2024 have seen losses from crypto hacks hit $2.114 billion, surpassing the total for all of 2023. This marks a sharp 72% increase compared to the same period last year, highlighting the growing vulnerability of both centralized and decentralized platforms.

Key Numbers:

• Jan-Sept 2023: $1.23 billion lost
• Full year 2023: $1.69 billion
• Jan-Sept 2024: $2.114 billion

Centralized finance (CeFi) platforms, in particular, have faced a huge rise in attacks, with incidents up nearly 1,000% year-on-year. Meanwhile, decentralized finance (DeFi) platforms have seen a 25% drop in losses, though they remain exposed due to complex smart contracts and protocols.

CeFi Hacks on the Rise

CeFi platforms have been hit hardest in 2024, with a 984% increase in crypto hacks. The second quarter of 2024 alone saw $401 million in losses across five major incidents.

The most notable was the DMM Bitcoin exchange breach, which resulted in a $305 million loss. Turkey’s BtcTurk was also hit for $55 million, alongside other exchanges like Lykke and FixedFloat.

Read more: 15 Most Common Crypto Scams To Look Out For

This wave of CeFi attacks signals a growing need for better security controls and regulatory action to prevent further losses.

DeFi Platforms See Fewer Losses but Remain at Risk

DeFi platforms saw a 25% reduction in losses compared to the same period in 2023. Still, $171.3 million was lost across 62 incidents in Q2 2024, with Ethereum and BNB Chain continuing to be key targets for attacks due to their large ecosystems.

Vulnerability Breakdown

• Access Control Breaches:
  • 2023 (Jan-Sept): $742.6 million
  • 2024 (Jan-Sept): $1.62 billion (99% increase)
• Smart Contract Exploits:
  • 2023 (Jan-Sept): $429.6 million
  • 2024 (Jan-Sept): $380.4 million (19% decrease)

Crypto Hacks Statistics

The total number of hacking incidents has surged:

• 2023 (Jan-Sept): 44 incidents
• 2024 (Jan-Sept): 131 incidents (197% increase)

These include:

• Smart Contract Exploits: Up from 28 in 2023 to 79 in 2024 (182% increase)
• Access Control Breaches: Up from 16 in 2023 to 51 in 2024 (218% increase)

The report urges the need for stronger cross-chain security and better real-time threat detection. As crypto faces more advanced attacks, including those driven by AI, stronger security measures and faster regulatory action are critical to safeguarding assets.

Read more: A Guide to the Best AI Security Solutions in 2024

Although DeFi has seen fewer losses, the entire industry is still at high risk. Improving security and taking more proactive steps will be essential to prevent future losses and protect the growing crypto market.

FTX creditors are expressing dissatisfaction with the payouts they are set to receive as the collapsed exchange prepares to distribute $16 billion to make its lenders whole.

The controversy stems from the significant fluctuations in cryptocurrency prices since FTX initially filed for bankruptcy.

FTX Lenders Unhappy With 10-25% Repayments

As BeInCrypto reported, FTX creditors will get between 10% and 25% of their crypto back. Notably, the repayments will come according to the petition date, which means when crypto prices were much lower. To put it in perspective, Bitcoin’s (BTC) price was $16,000 at the time and around $65,000 now.

The creditors are upset with the decision to use petition date prices for reimbursement. They argue that this reorganization plan won’t fully compensate for their losses, many of which included life savings. Several creditors have reported severe emotional tolls, including mental distress and panic attacks, as a result of the collapse.

“Can’t understand why a law can’t protect us investors about this scam,” said one victim in response to a post by FTX creditor activist Sunil Kavuri.

Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell

Many other responses followed, reflecting the displease and dissatisfaction of the creditors. The US Securities and Exchange Commission (SEC) also pointed to potential objections, especially if the defunct exchange decides to pay off creditors using stablecoins.

The complaints come weeks after FTX and Emergent Technologies agreed to secure $600 million in Robinhood shares to make creditors whole. Noteworthy, FTX founder Sam Bankman-Fried co-founded Emergent Technologies.

Under the terms, according to a September 6 motion by FTX CEO John Ray III in a Delaware Bankruptcy Court, FTX will pay Emergent $14 million to cover administrative expenses after it withdrew a petition to claim 55 million Robinhood shares and cash. The settlement also provides a path for Emergent to expedite the resolution of its bankruptcy case in Antigua.

According to FTX, this agreement would help recover more money for its creditors and avoid further litigation costs. Per the exchange, this would mark an important step in its reorganization plan to maximize value for creditors.

Read more: Who Is John J. Ray III, FTX’s New CEO?

According to John Ray III, this reorganization plan was the result of “good faith arm’s length negotiations between the parties and that such negotiations were free of any collusion.”

The crypto market is gearing up for one of its biggest token unlock events in 2024, with over $3 billion worth of tokens set to be released in October. 

BeInCrypto has highlighted the top three unlocks that will introduce a substantial influx of assets into the market.

October Token Unlocks: What to Expect

Data from TokenUnlocks indicates that approximately $1.6 billion of this month’s token unlocks are classified as cliff unlocks. In the context of token unlock events, cliff refers to tokens set to release on a schedule that’s more periodic than daily, such as weekly, monthly, or yearly.

Since token unlocks introduce previously unavailable tokens into circulation, investors and traders closely monitor these events because they affect the market environment. While some view these events as growth opportunities, they also carry the risk of increased selling pressure.

“Uptober is just around the corner — Stay Informed, Not FOMO-Driven. With $3.46B in token unlocks scheduled for the month, it’s essential to keep a close eye on the market,” the Token Unlocks team wrote.

This month’s most significant cliff token unlocks include Celestia (TIA), Sui (SUI), Immutable (IMX), Aptos (APT), and Arbitrum (ARB).

Sui (SUI)

On October 1, Sui will unlock 64.19 million tokens. These tokens, worth approximately $106 million, account for 2.40% of its circulating supply. The distribution of these tokens will be as follows:

• Series A: 19.84 million SUI ($32.93 million)
• Series B: 19.32 million SUI ($32.07 million)
• Early contributors: 10.34 million ($17.16 million)
• Mysten Labs treasury: 2.07 million SUI ($3.44 million)
• Community reserve: 12.63 million SUI ($20.96 million)

Read more: Everything You Need to Know About the Sui Blockchain

Immutable (IMX)

Following Sui, Immutable will release 32.47 million IMX tokens on October 4. These tokens, worth roughly $59.10 million, translate to 2.02% of IMX’s circulating supply. They will be distributed to the ecosystem and project developments, with the details as follows:

• Ecosystem development: 15.91 million IMX ($28.96 million)
• Project development: 16.56 million IMX ($30.14 million)

Aptos (APT)

Aptos’ unlock on October 11 will see 11.31 million APT tokens enter the market. This figure equals 2.25% of APT’s total supply, with a total value of $96.25 million.

The distribution of these tokens will be as follows:

• Foundation: 1.33 million APT ($11.35 million)
• Community: 3.21 million APT ($27.32 million)
• Core contributors: 3.96 million APT ($33.69 million)
• Investors: 2.81 million APT ($23.90 million)

Read more: Where To Buy Aptos (APT): 5 Best Platforms for 2024

Arbitrum (ARB)

On October 16, Arbitrum will release 92.65 million ARB tokens, worth $61.90 million. This significant unlock represents 2.56% of ARB’s circulating supply. The distribution of these tokens will be as follows:

• Team, future team, and advisors: 56.13 million ARB ($37.50 million)
• Investors: 36.52 million ARB ($24.40 million)

Celestia (TIA)

Finally, on October 30, Celestia will unlock 175.56 million TIA tokens, valued at $1.12 billion. These tokens will be allocated to early backers and initial core contributors. The breakdown of this token unlock allocation will be as follows:

• Early Backers Series A&B: 65.01 million TIA ($414.76 million)
• Early Backers Seed: 52.47 million TIA ($334.76 million)
• Initial Core Contributors: 58.08 million TIA ($370.55 million)

Beyond these major unlocks, the market will also see cliff token unlocks from other notable projects in October, including Starknet (STRK), ZetaChain (ZETA), and ApeCoin (APE).