Web3 bug bounty and security services platform Immunefi has closed a $24 million Series A funding round, putting the company on track to scale its internal capacity amid widespread vulnerabilities in the blockchain industry.
The funding round was led by San Francisco-based venture firm Framework Ventures, with additional participation from Electric Capital, Polygon Ventures, Samsung Next, P2P Capital and others. Immunefi said the capital would be used to hire staff as it scales to meet growing demand for blockchain security and bug bounty services.
Immunefi claims to have paid out a total of $60 million in bounties since its inception less than two years ago. The platform now supports over 300 projects in the crypto ecosystem, including Chainlink, MakerDAO, and Compound. To incentivize white hat hackers, Immunefi offers bounties and rewards for exposing security vulnerabilities of leading blockchain protocols.
The rise of crypto hacks in 2022 has skyrocketed the demand for blockchain security experts, with some auditors earning more than $430,000 a year. https://t.co/rafgW5TNBP
— TUSEN (@TUSEN) August 23, 2022
As reported by TUSEN, Immunefi raised $5.5 million in funding last October to further boost its security capabilities. At the time, the company had paid out $7.5 million in premiums.
Related: The impact of the Wintermute hack could have been worse than 3AC, Voyager and Celsius – here’s why
The decentralized financial or DeFi sector is particularly vulnerable to security vulnerabilities. In 2021 alone, scams and exploits targeting DeFi protocols cost the industry more than $10.2 billion, according to research conducted by Immunefi. DeFi will remain a major attack vector for scammers in 2022, as evidenced by the recent $160 million exploitation by crypto market maker Wintermute.
One of the biggest DeFi exploits happened in April of this year when Axie Infinity’s Ronin Bridge was hacked for more than $600 million. Three months later, Axie relaunched his Ronin bridge.