Web3 bug bounty platform Immunefi has revealed that the cryptocurrency industry lost an estimated $509 million to hacks and fraud in the second quarter of 2024, marking a staggering 91% increase from the same period last year. May 2024 alone saw the highest monthly losses recorded, amounting to $107 million. June, however, experienced a slight reprieve with losses dropping to $78 million across 12 incidents, a 27% decrease from the $107 million lost in June 2023.

Centralized crypto institutions were the prime targets, accounting for two-thirds of successful attacks, according to the Immunefi report. The findings also highlighted that Ethereum was the most exploited blockchain during the quarter, followed by the BNB chain and Arbitrum, representing 44.4%, 25%, and 5.6% of the total losses, respectively.

Jonah Michaels, Communications Lead at Immunefi, noted that Ethereum’s prominence as the main hub for DeFi activity, coupled with the vast amount of funds locked within its ecosystem, makes it a prime target for hackers. He explained that hackers exploit numerous protocols on Ethereum for significant gains, and its connection to major privacy-focused chains and technologies facilitates the quick laundering of stolen funds.

The most significant loss this quarter was suffered by Japanese centralized exchange DMM Bitcoin, which fell victim to hackers and lost an astonishing $305 million. In response, DMM Bitcoin has instituted measures to reimburse affected customers. Other notable targets included BtcTurk, Hedgey, Lykke, Gala Games, and SonneFinance, which collectively faced losses totaling $164.2 million.