According to a recent report by cybersecurity firm Immunefi, the number of crypto hacks has decreased by 44% in January compared to the same time last year. While this may seem like a positive trend, it’s important to note that centralized finance (CeFi) platforms are still the primary target for hackers, accounting for a staggering 93% of total losses.

The report also revealed that the total amount lost due to crypto hacks in January was $10 million, a significant decrease from the $16.9 million lost in January 2020. This decrease can be attributed to the increased security measures and awareness within the crypto industry, as well as the growing popularity of decentralized finance (DeFi) platforms.

However, despite the overall decrease in crypto hacks, CeFi platforms continue to be the main target for hackers. This is because these platforms hold a large amount of user funds in a centralized location, making them an attractive target for cybercriminals. In contrast, DeFi platforms operate on a decentralized network, making it more difficult for hackers to access and steal funds.

The report also highlighted the importance of bug bounty programs in preventing and mitigating crypto hacks. These programs offer rewards to individuals who identify and report vulnerabilities in a platform’s code, helping to improve its security and protect user funds. Immunefi, a leading bug bounty platform for DeFi projects, has helped to prevent over $1 billion in potential losses since its launch in 2020.

As the crypto industry continues to grow and evolve, it’s crucial for platforms to prioritize security measures and work towards decentralization. This will not only protect user funds but also help to build trust and confidence in the industry as a whole. With the rise of DeFi and the increasing adoption of bug bounty programs, we can hope to see a further decrease in crypto hacks in the future.