DeFi hacks drop 40% in 2024, CeFi breaches surge to $694M
Decentralized finance (DeFi) security saw a 40% reduction in financial losses in 2024, attributing this improvement to enhanced protocols and cryptographic measures. In contrast, centralized finance (CeFi) faced significant challenges, with losses exceeding $694 million due to access control vulnerabilities. Hacken's report highlighted a substantial decline in bridge-related exploits, from $338 million in 2023 to just $114 million in 2024, showing DeFi's resilience. However, access control issues still accounted for nearly half of all DeFi losses, exemplified by the Radiant Capital hack. DeFi's losses dropped from $787 million in 2023 to $474 million this year. On the other hand, CeFi breaches more than doubled, attributed to compromised private keys and multisignature vulnerabilities, as illustrated by incidents at DMM Exchange, leading to the theft of significant sums. Dyma Budorin, Hacken's CEO, pointed out critical security gaps in CeFi, stressing the need for better key management and automated monitoring. The report underscores the stark differences in security progress between the two sectors, signaling potential improvements for both.
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