Over $1.41 Billion Lost to Hacking and Fraud in 2023
A recent report by Immunefi has revealed that between January and October 2023, the cryptocurrency industry suffered losses of over $1.41 billion due to hacking and fraudulent activities. In October alone, approximately $22.2 million was lost, with hacking and fraud being the main culprits.
BNB Chain and Ethereum Most Frequently Targeted
The report also highlighted that BNB Chain and Ethereum were the most frequently targeted blockchain networks during this period, accounting for 83.3% of the total losses among all targeted chains. BNB Chain experienced the highest number of individual attacks, with 11 incidents resulting in a loss of 45.8%. Ethereum followed closely with 9 incidents and a loss of 37.5%.
Other Targeted Chains
While BNB Chain and Ethereum were the primary targets, other chains also experienced attacks. Avalanche had 2 incidents (8.3% loss), Polygon had 1 incident (4.2% loss), and Fantom had 1 incident (4.2% loss).
Hacking Incidents vs Fraudulent Activities
“In October 2023, hacks continue to be the predominant cause of losses as compared to frauds, scams, and rug pulls. An analysis of the losses shows that fraud accounts for 26.32% of the total losses in October 2023, while hacks account for 73.68%.”
DeFi Platforms Most Exploited
DeFi platforms were the primary focus of exploitation in October, accounting for 100% of the total losses. On the other hand, no major exploits were reported in CeFi platforms.
Q3 2023 Recorded Highest Losses
The report also mentioned that Q3 2023 saw the highest losses, with over $340 million lost in September and more than $320 million lost in July. These losses were primarily driven by hacking, fraud, and scams.
Previous Report on Digital Asset Losses
Earlier, CertiK, a blockchain security firm, reported that exploits, hacks, and scams had resulted in the loss of nearly $332 million in various digital assets in September.
Hot Take: Hacking and Fraud Cause Over $1.41 Billion Losses in Cryptocurrency Industry
The cryptocurrency industry has suffered significant losses due to hacking and fraudulent activities. From January to October 2023 alone, over $1.41 billion has been lost in 292 specific incidents. In October 2023, losses amounted to approximately $22.2 million. The most targeted blockchain networks were BNB Chain and Ethereum. Hacking incidents were the primary cause of financial losses, surpassing fraudulent activities. DeFi platforms were the main focus of exploitation, while Q3 2023 recorded the highest losses. It is crucial for investors and users to remain vigilant and take necessary precautions to protect their assets.
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