Drastic Increase in Illicit Crypto Activities in Q3 2023, Says Beosin EagleEye
According to Beosin EagleEye, a web3 security company, there was a significant rise in illicit crypto activities during the third quarter of 2023. In this period, the total losses from hacks, phishing scams, and rug pulls in the web3 sector reached $889.26 million. Hacks or major attacks accounted for about 60% of these losses.
Hacks and Major Attacks Constitute Majority of Losses
Beosin EagleEye reveals that there were 43 major attacks resulting in a total loss of approximately $540.16 million during Q3 2023. Additionally, phishing scams caused losses of around $66.15 million, while rug pulls resulted in losses of approximately $282.96 million.
Increase in Losses Compared to Previous Quarters
The losses incurred during the third quarter were approximately 34% higher than the combined losses of the first and second quarters of 2023. The total losses during Q1 and Q2 were $330 million and $333 million respectively, while Q3 witnessed losses amounting to $889.26 million.
Lazarus Group: The Biggest Threat to Web3 Security
Beosin EagleEye identifies North Korean hackers known as the Lazarus Group as posing the biggest threat to web3 security during Q3. They stole over $208 million across four attack incidents. Furthermore, a security incident involving Mixin, a decentralized cross-chain trading network, accounted for 37% of the total losses for the quarter.
Ethereum and Mixin Network Lead in Losses
Ethereum recorded the highest amount of losses from security incidents, with approximately $227 million. Mixin Network ranked second with a single event causing $200 million in losses. Combined, Ethereum and Mixin accounted for 79% of the total losses.
Hot Take: Rising Losses Highlight the Need for Enhanced Web3 Security
The significant increase in illicit crypto activities and the substantial losses incurred during Q3 of 2023 emphasize the urgent need for enhanced web3 security measures. With hackers and scammers becoming more sophisticated, it is crucial for individuals and organizations to prioritize security protocols to protect their assets in the crypto space.
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