Recent findings from cybersecurity firm SlowMist unveil that the Ethereum (ETH) ecosystem has encountered significant exploits in 2024, resulting in losses amounting to $400 million. This represents a stark 50% rise in crypto hacking incidents compared to previous periods.

According to SlowMist’s mid-year report for 2024, Ethereum, as the second largest digital asset by market capitalization, suffered the highest financial losses due to exploits within its ecosystem. Following Ethereum, layer-2 scaling solutions Arbitrum (ARB) and Blast also reported substantial losses, totaling $72.46 million and $70 million, respectively.

In addition, Binance Smart Chain (BSC) recorded the highest number of security breaches, tallying 57 incidents and approximately $32.12 million in losses.

SlowMist’s research indicates that the digital assets sector experienced a total of 223 security incidents in the first half of 2024, resulting in combined losses of $1.43 billion. This marks a significant increase from the $920 million lost during the same period in 2023.

Highlighting decentralized finance (DeFi) as the most targeted sector, SlowMist reports that 158 incidents, accounting for 70.85% of all incidents, were directed at DeFi protocols. These incidents resulted in losses totaling $659 million, showcasing a 37.29% increase compared to the first half of 2023, which recorded losses of approximately $480 million from 111 incidents.

SlowMist identifies contract vulnerabilities and exit scams as the primary causes behind these exploits, contributing to 56 and 50 incidents, respectively.

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