Two Projects Responsible for Majority of Q3 2023 Crypto Losses
The bug bounty platform Immunefi has identified two projects as the main culprits behind the $662,850,580 in crypto losses during the third quarter of 2023. These projects are Mixin Network and Multichain, which experienced breaches resulting in significant financial damages.
DeFi Incidents Outnumber CeFi Incidents
The report published by Immunefi reveals that there were 49 reported crypto hacks in Q3 2023, marking a 66% increase compared to the same period in the previous year. The majority of these incidents targeted Decentralized Finance (DeFi) rather than Centralized Finance (CeFi).
DeFi Takes the Brunt of Exploits
According to the report, DeFi accounted for 72.9% of the total losses, while CeFi represented 27.1%. DeFi incurred $499,810,444 in losses across 71 incidents in Q3 2023, an increase of 18.5% compared to the previous year.
CeFi Losses Surge Dramatically
On the other hand, CeFi experienced a significant surge in losses, with a total of $185,700,000 in Q3 2023. However, the number of incidents was much lower at 5. This represents a staggering 3,409.14% increase compared to Q3 2022.
Hot Take: DeFi Remains Vulnerable to Exploits
Despite the increasing number of security measures and bug bounty programs, DeFi continues to be the primary target for crypto exploits. The high incidence of breaches in the third quarter of 2023 highlights the need for enhanced security protocols and vigilance within the DeFi space.
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