Over $1.8 Billion Lost in Crypto Hacks and Scams in 2023
A recent report by bug bounty platform Immunefi reveals that crypto users suffered losses of $1.8 billion due to various hacks, exploits, scams, and rug pulls throughout 2023. Although this represents a 54% decrease compared to the previous year’s losses of $3.9 billion, the number of individual incidents increased by 90%, rising from 168 in 2022 to 319 in 2023.
Disastrous Third Quarter
The third quarter of 2023 proved to be the most disastrous, accounting for one-third of all losses recorded during the year. In terms of monthly figures, November ($343 million), September ($340 million), and July ($320 million) witnessed the highest losses.
Hacks and Fraud Account for Major Losses
According to the report, decentralized finance (DeFi) platforms were responsible for the majority of losses, with $1.6 billion lost in 247 hack incidents. Additionally, fraud accounted for $103 million lost in 110 separate incidents. Fortunately, around $231.7 million (13.5% of stolen funds) has been recovered in 19 cases.
Most Attacked Blockchains
The most frequently targeted blockchains were BNB Chain and Ethereum, which together accounted for over half of the total losses. BNB Chain-based projects experienced 131 incidents, while Ethereum suffered 91 attacks. Polygon and Avalanche also faced attacks, with ten and six incidents respectively.
Lazarus Group’s Heist
In 2023, North Korea’s Lazarus Group stole $308.6 million from various projects, making up 17.4% of the total losses for the year. This group was responsible for attacks on Atomic Wallet, CoinEx, Alphapo, Stake, and CoinsPaid. Other notable incidents included attacks on Mixin Network ($200 million), Euler Finance ($197 million), Multichain ($126 million), Poloniex ($126 million), and BonqDAO ($120 million).
Hot Take: Crypto Users Still Face Significant Risks
Despite a decrease in overall losses compared to the previous year, the crypto industry remains susceptible to hacks, scams, and exploits. The rise in individual incidents emphasizes the need for robust security measures and heightened awareness among users. As the industry continues to evolve, it is crucial for crypto enthusiasts to stay vigilant and take necessary precautions to protect their funds.
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