Cyvers: CeFi Accounts for 70% of Losses from Hacker Attacks

Centralized finance (CeFi) projects are set to become the primary target for hackers in 2024, according to Cyvers co-founder and CEO Deddy Lavid in an interview with Cointelegraph.

He noted that CeFi organizations account for approximately 70% of incidents in terms of lost funds and the number of exploits.

“Meanwhile, the number of attacks on smart contract-based projects is increasing. The greatest security vulnerabilities today arise both from code and personal negligence,” he added.

The prevalence of breaches in the CeFi sector is evidenced by the July incident with the Indian exchange WazirX, where hackers stole assets worth $235 million. North Korean hackers were suspected of involvement in the incident.

In late May, the Japan-based trading platform DMM Bitcoin also lost $305 million in bitcoins due to an attack.

Lavid believes that a more comprehensive approach to Web3 security is necessary to address the issue:

“Eliminating these vulnerabilities requires a shift to a more mature and conscious approach. Ensuring the security of entire networks, not just individual projects, and focusing on both technological and human factors are important steps in this direction, especially as L2 solutions continue to grow.”

The future “successes” of hackers depend on the actions of each individual project, but integrating artificial intelligence into security systems could significantly enhance their effectiveness, according to the Cyvers CEO.

Over the past year, smart contract security has improved, prompting hackers to seek easier exploits such as private key leaks. According to a report by Merkle Science, in 2023, such attacks accounted for about 55% of stolen assets.

Simultaneously, losses from smart contract vulnerabilities have decreased by 92% to $179 million, down from $2.6 billion the previous year.

Since the beginning of 2024, 149 incidents have resulted in $1.19 billion in damages to the crypto industry due to hackers and fraudsters, according to data from Immunefi.