According to data from cybersecurity firm Cyvers, stolen funds on centralized exchanges increased 900% year over year in the second quarter.

Crypto exploits near $1.4B this year as hackers target CeFi — report

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The high-profile breach in May of Japanese cryptocurrency exchange DMM heavily impacted Cyvers’ Q2 data. The hack—which was reportedly caused by a compromised private key—drained upward of $300 million. Another significant outlier was the Turkish cryptocurrency exchange BtcTurk, which lost around $50 million to hackers in June.

The report noted that explicit victims are having greater success than before in recovering lost funds, with total funds recovered increasing by 42% in Q2 over the same period last year. Still, the vast majority of lost funds—some 76%—have not been retrieved.

Web3 users should remain on the lookout for emergent threats posed by artificial intelligence and quantum computing, which could provide hackers with sophisticated new tools for bypassing onchain security measures, Cyvers said.