The cryptocurrency industry suffered significant losses in the second quarter of this year, with a staggering $572.7 million lost due to hacks and scams. This figure represents a 70.3% increase from the first quarter and a 112% increase from the same period last year. The report from Immunefi highlights the growing concern over the security of digital assets and the need for improved measures to prevent such incidents.

The majority of the losses came from two significant exploits, with a combined total of $360 million. A $305 million exploit of Japanese cryptocurrency trading platform DMM Bitcoin represented the largest attack, with a further $55 million stolen from Turkish crypto exchange BtcTurk on June 23. May witnessed the highest monthly losses in Q2 overall at $358.5 million.

Hacks dominated the losses in Q2, accounting for 98.5% ($564.2 million) of the total across 53 incidents, compared to cases of fraud, scams and rug pulls at only 1.5% ($8.5 million) over 19 specific incidents. Ethereum and BNB Chain were again the most targeted networks, as they were in Q1. Ethereum suffered the most individual attacks with 34 incidents, representing 46.6% of the losses on chains, followed by BNB Chain with 18 incidents, representing 24.7%.

The report highlights the devastating impact of poorly built infrastructure and the effects on users and everyone involved. Immunefi founder Mitchell Amador emphasized the importance of securing centralized exchange infrastructure, noting that this quarter’s losses highlight how infrastructure compromises can be the most devastating hacks in crypto. As the industry continues to grow, it is crucial to prioritize robust measures to safeguard the entirety of the ecosystem.

In total, $28.7 million (5%) of the stolen funds in Q2 were recovered from four of the exploits: Bloom, ALEX Lab, Gala Games and Yolo Games. Immunefi claims to operate the largest blockchain security community with over 45,000 researchers, saving more than $25 billion in user funds across protocols like Polygon, Optimism, Chainlink, The Graph, Synthetix and MakerDAO from being stolen.

The highest white hat hacker bounty facilitated by Immunefi was a $10 million award for a vulnerability discovered in Wormhole’s cross-chain protocol. The report serves as a reminder of the importance of prioritizing security and taking measures to prevent such incidents in the future.

The cryptocurrency industry has faced significant challenges in recent years, and the rise in hacks and scams is a growing concern. The report from Immunefi highlights the need for improved security measures and the importance of prioritizing the safety of digital assets. As the industry continues to evolve, it is crucial to address these issues and work towards a more secure future.

In conclusion, the cryptocurrency industry suffered significant losses in Q2 due to hacks and scams, with a total of $572.7 million lost. The report from Immunefi highlights the growing concern over security and the need for improved measures to prevent such incidents. As the industry continues to grow, it is crucial to prioritize robust measures to safeguard the entirety of the ecosystem and work towards a more secure future.