The first half of 2024 saw significant financial losses due to security breaches in the Web3 ecosystem. According to the latest QuillMonitor report, a staggering $1,395,017,533 was lost across various types of attacks. This highlights the urgent need for enhanced security measures and thorough audits in the decentralized finance (DeFi) and cryptocurrency sectors.
QuillAudit’s report goes beyond presenting raw data & offers an analysis of how these security breaches impact the broader Web3 ecosystem.
Key Highlights
- Total Losses: $1,395,017,533.00 lost to hacks in the first half of 2024.
- Most Expensive Month: May was the most expensive month, with $347.1 million lost in 35 incidents.
- Most Affected Chain: Ethereum experienced the highest security breaches with 150 incidents, resulting in $172.90 million in losses.
- Recovery Efforts: $111,798,031 of the hacked value was recovered.
- ETH Denver: Sponsored events and offered $50k in grants, career opportunities, and affiliate programs.
- TOKEN 2049 & ETH Dubai: Launched QuillShield for smart contract security with AI-driven audits and incident response.
- Consensus 2024: Discussed DePIN Economy, Move-based smart contracts, and co-hosted QuillCon VC Dinner.
- WoW Summit Hong Kong: Sponsored GM Vietnam Rust Hackathon, provided $50k in audit credits, and gave 1 million QuillAudits Points.
Spotlight on Major Hacks
Among the numerous incidents, the following stand out as the most significant:
- DMM Exchange: $304M (DMM Bitcoin Hack)
- Chris Larsen Private Key Compromise: $112M
- Munchables: $62.80M
- BitForex Exit Scam: $56.5M
- BtcTurk: $55M
Major Incidents Investigated
QuillAudits investigated several major incidents, including:
- The largest exit scam by ZKASINO resulted in a $33 million loss.
- Significant smart contract vulnerabilities in Hedgey Finance ($44.7 million) and UwU Lend ($16 million).
- QuillShield, an AI agent from the QuillAI Network, detected a notable vulnerability in $NORMIE.
AI & Web3 are like a Dynamic Duo
Embracing AI is not just an upgrade for web3 but its necessary if web3 wishes to remain a viable option for users.
- AI x DePIN: High demand for AI applications strains GPU availability & increases computing costs. DePIN’s decentralized computer networks offer an alternative to centralized providers, fueling sector growth.
- AI x Zero-Knowledge: ML enhances smart contract adaptability, but on-chain implementation is costly. Zero-Knowledge Machine Learning (ZKML) uses off-chain processing & zero-knowledge proofs for secure, efficient AI integration with blockchain.
- AI x Web3 Security: AI improves Web3 security through auditing smart contracts, scam token detection, and on-chain transaction analysis.
QuillAudits’ QuillAI Network, powered by Eigen Layer AVS, features AI agents like the Solidity AI Agent for rapid contract fixes and QuillCheck for scam detection and risk assessment.
This integration enhances investment safety and builds a more trustworthy Web3 ecosystem, fostering blockchain innovation.
Enhancing Web3 Security with AI
QuillAudits also highlighted the integration of artificial intelligence in Web3 through the Quill AI Network.
This includes:
- QuillShield: An AI agent capable of identifying and fixing vulnerabilities in smart contracts.
- QuillCheck: An agent designed to assess whether a token is susceptible to rug pulls.
With expertise spanning over 24 blockchain platforms, including Ethereum, Solana, Avalanche, and Binance Smart Chain, QuillAudits delivers tailored security solutions, actionable insights, and a commitment to transparency and reliability in the ever-evolving blockchain landscape.
Ending Thoughts
The first half of 2024 has highlighted the critical need for robust security measures in the Web3 space. Comprehensive audits, enhanced due diligence, and the integration of AI tools are essential to safeguard against vulnerabilities and protect investors.
Firms like QuillAudits play a pivotal role in this landscape, ensuring the integrity and security of decentralized systems.
QuillAudit’s Half yearly report is free to read
