Crypto and Web3 Projects Experience Surge in Attack Incidents
A recent report from blockchain security platform Immunefi reveals that crypto and Web3 projects faced a significant increase of 153% in attack incidents during the period of July to September 2023 compared to the same timeframe in 2022. In Q3 2022, there were a total of 30 attack incidents, but this number soared to 76 in Q3 2023, resulting in a loss of nearly $686 million.
High-profile Attacks and Losses
The most substantial loss occurred during the Mixin hack on September 25, which drained approximately $200 million. The Multichain hack followed closely as the second-worst attack of the quarter, leading to over $126 million in unrecovered losses. The Lazarus Group was responsible for draining over $208 million worth of crypto through multiple attacks on centralized services such as CoinEx, Alphapo, Stake, and Coinspaid. They accounted for 30% of all stolen crypto in Q3.
Rug Pulls and Scams
Rug pulls and other scams constituted a small portion of the Q3 attacks, contributing only $23 million or 3.3% of the total losses. The remaining 96.7% came from hacks or exploits. However, there was a decrease of 23.9% in monetary losses from scams compared to Q3 2022.
Decentralized Finance (DeFi) vs Centralized Services
The report highlights that decentralized finance (DeFi) hacks accounted for 72.9% of the total losses, while centralized services were responsible for only 27.1% of exploit losses. Immunefi did not provide specific definitions for “decentralized” and “centralized” services.
Most Targeted Networks
Hackers and scammers primarily targeted Ethereum and BNB Chain, with Ethereum representing 42.7% of the losses and BNB Chain accounting for 30.5%. Base and Optimism were also popular networks for attackers to exploit.
Worst Quarter for Hacks and Scams
The report adds to the growing evidence that Q3 has been the most challenging quarter of the year in terms of crypto-related hacks and scams. A similar conclusion was reached by a report from Certik on October 2.
Hot Take: Rising Attack Incidents Highlight Need for Enhanced Security Measures
The surge in attack incidents faced by crypto and Web3 projects emphasizes the importance of strengthening security measures within the industry. With losses amounting to millions of dollars, it is crucial for platforms to prioritize the protection of user funds. Implementing robust security protocols, conducting regular audits, and educating users about potential risks can help mitigate the impact of attacks. Additionally, collaboration between projects, regulators, and security experts is vital in ensuring a safer environment for participants in the crypto space.
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