Cyvers, a blockchain security firm, claims that a new blockchain security solution could prevent over 99% of cryptocurrency hacks and scams, which have cost the industry more than $2.3 billion in 2024. According to Michael Pearl, the Vice President of GTM strategy at Cyvers, this emerging security solution simulates and validates blockchain transactions in an offchain environment, effectively preventing almost all cryptocurrency scams. Pearl states that this comprehensive solution can even prevent unknown hacks like zero-day hacks. He further adds that wallet providers and centralized exchanges are increasingly interested in Cyvers’ transaction validation solution, which can be applied to various types of transactions, including flash loans.
Phishing scams in the crypto industry have been particularly damaging, resulting in $1 billion in stolen funds across 296 incidents in 2024. At least three phishing incidents have caused losses exceeding $100 million. Pearl claims that Cyvers’ solution could have prevented the $230 million WazirX hack by detecting the malicious smart contract eight days before the funds were lost. He emphasizes that centralized exchanges are vulnerable targets for attackers due to the concentration of funds in a few hot wallets.
In 2024, access control vulnerabilities accounted for $1.9 billion worth of stolen value, representing over 81% of the total losses from crypto hacks. These vulnerabilities were responsible for 67 cybersecurity incidents. Smart contract exploits ranked as the second-largest attack vector, resulting in $456 million in losses across 98 incidents, accounting for 19% of the total stolen value.