Crypto Industry Loses $1.19 Billion in 2024 Due to Onchain Security Breaches

• Crypto losses reached $1.19B in H1 2024, mainly due to phishing and key compromises.
• The FIT21 bill aims to enhance consumer protection in crypto.
• CertiK urges use of 2FA and hardware wallets to improve security.

The cryptocurrency industry faced substantial losses in the first half of 2024, totaling $1.19 billion due to onchain security incidents, as reported by CertiK in its latest Web3 Security Report. The analysis underlines phishing attacks and private key compromises as primary contributors, with phishing alone accounting for nearly $498 million of the losses. 

This alarming trend underscores an urgent need for enhanced security practices among crypto holders and platforms.

Enhanced Security Measures Needed

Ronghu Gu, co-founder of CertiK, emphasized the necessity of multifactor authentication, including two-factor authentication (2FA) and security keys. He strongly advocated for the use of hardware wallets or similarly secure key management solutions for interacting with significant funds. This advice comes in the wake of several high-profile security breaches, including the DMM Bitcoin attack, which alone resulted in a loss of $304 million.

Regulatory Developments and Market Response

The first half of the year also saw the introduction and passing of the FIT21 bill in the United States, aimed at improving consumer protections and supporting crypto sector innovation. This legislative move is anticipated to attract more institutional investors and drive enhanced compliance across the industry. 

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Gu remarked, “the FIT21 bill will likely attract more institutional investors and drive greater compliance efforts and requirements across the industry,” highlighting its potential to foster a safer investment landscape.

The emphasis on strengthening defenses and regulatory frameworks becomes increasingly crucial in securing the digital asset ecosystem as the landscape evolves. This ongoing commitment to enhancing security measures and regulatory compliance is expected to play a role in the resilience and growth of the cryptocurrency industry.

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