Gate Research: Security Incident Summary for December 2024

This report provides an overview of the security incidents in the Web3 industry during December 2024. There were 27 incidents resulting in an estimated $4.11 million in losses, indicating a decrease from the previous month. However, smart contract vulnerabilities continue to be the main threat, contributing to 72% of the total losses. Key incidents include the FEG cross-chain vulnerability, the Clober DEX liquidity vault attack, and the Vestra DAO staking contract exploit. The primary risks this month were smart contract flaws, hacked accounts, and flash loan attacks, underscoring persistent challenges and the pressing need for enhanced security measures in the Web3 space.

Key Points Summary:

Overview of Security Incidents: In December 2024, the Web3 industry experienced 27 security incidents, leading to approximately $4.11 million in economic losses. Despite a significant reduction in losses compared to November, security risks remain high, emphasizing the urgency for the industry to bolster its defense mechanisms.

**Main Attack Methods and Key Incidents: **Smart contract vulnerabilities were the predominant threat this month, accounting for 72% of total losses. Other significant sources of risk included account hacks and flash loan attacks. Noteworthy incidents included a $1 million loss due to the FEG cross-chain vulnerability and a $500,000 loss from the Clober DEX liquidity insurance vault attack due to an exploited contract vulnerability.

**Security Landscape and Fund Distribution on Public Blockchains: **The data from December shows that security incidents were primarily concentrated within the ecosystems of BSC, Ethereum, Cardano, and Base. Ethereum-related incidents led to the highest losses, followed by BSC. Despite the increasing robustness of underlying blockchain technology, vulnerabilities in application-layer smart contracts still pose serious threats to user assets.

**Industry Trends and Security Challenges: **The variety of security incidents in December and the advancing sophistication of attack methods highlight the severe security challenges that the Web3 industry faces amid rapid development. Vulnerabilities in contracts and cross-chain protocols are critical issues. Moreover, flaws in liquidity pool management and design functionality continue to offer opportunities for exploitation.

**Security Improvements by Leading Platforms: **Top platforms in the industry have taken proactive steps to mitigate security risks. These measures include improved third-party audits, real-time monitoring of smart contracts, and the promotion of multi-layered defense mechanisms such as liquidity pool limits and optimized risk control strategies. These platforms are also raising awareness about asset protection among users through educational initiatives, aiming to strengthen overall defense capabilities.

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