In the past year, hackers have intensified their targeting of cryptocurrency projects, particularly focusing on DeFi.
According to a report by Immunefi, hacks across blockchains increased by 65% in Q2 2023 compared to the same period last year. However, total losses have decreased by 60% from last year. Immunefi warns that the losses from fraud have skyrocketed by 225%.
“In total, we have seen a loss of $265,481,519 across the web3 ecosystem in Q2 2023,” the report says. “$220,522,129 was lost to hacks in Q2 2023 across 63 specific incidents and $44,959,390 was lost to fraud in across 18 specific incidents.”
Two specific projects, Atomic Wallet and Fintoch, accounted for most of the losses. Atomic Wallet is a non-custodial decentralized wallet; Fintoch was a blockchain financial platform.
Highlights of Crypto Losses in Q2 2023
- Two significant exploits during the quarter accounted for a staggering $131.6 million, representing nearly half of all losses in Q2 2023.
- Hacks remained the primary cause of losses, comprising 83.1% of the total. Frauds, scams, and rug pulls accounted for only 16.9%.
- DeFi remained the primary focus of successful exploits, accounting for 86.1% of the total losses, while CeFi constituted 13.9%. The BNB Chain experienced the highest number of attacks, with 36 incidents, followed by Ethereum with 26 incidents. In Q2 2023, Arbitrum witnessed 10 incidents, while Polygon and ZKSync each had 2 incidents.
- Out of the total losses in Q2 2023, only $10,451,189 was recovered, which accounted for 3.9%.