The Crypto Industry Lost $1.2 Billion to Hacks and Fraud
A recent report by Immunefi, a bug bounty platform for Web 3 and smart contract security, reveals that the crypto industry suffered losses amounting to $1.2 billion in the first eight months of the year. The report highlights the prevalence of hacks, accounting for 67.7% of the losses, while fraud makes up the remaining 32.3%. In August alone, losses reached over $23 million, with hacks continuing to be the primary cause. Ethereum, Base protocol (backed by Coinbase), and BNB Chain were the most targeted chains, collectively representing over half of the losses in August.
Key Points:
- The crypto industry lost $1.2 billion via 211 incidents
- Hacks accounted for 67.7% of the losses, while fraud accounted for 32.3%
- August saw losses of over $23 million, primarily due to hacks
- Ethereum, Base protocol, and BNB Chain experienced the highest number of incidents
- Decentralized finance (DeFi) platforms were targeted in all 17 incidents in August
DeFi Platforms Exactly and Harbor Under Attack
In August, two decentralized finance (DeFi) platforms, Exactly and Harbor, fell victim to major attacks. Exactly Protocol saw hackers steal approximately 4,323.6 ETH, worth nearly $7.3 million at the time. The attackers then moved a portion of the stolen funds through the Across Protocol and the rest to the Ethereum network using the Optimism Bridge. Separately, Harbor, an interchain stablecoin protocol, also suffered an attack resulting in losses from its stablecoin creation and various vaults. The exact amount stolen is still unknown, with Harbor actively working to track the funds.
Key Points:
- Exactly Protocol lost around 4,323.6 ETH in a hack
- The attackers moved a portion of the stolen funds through the Across Protocol and the rest to Ethereum via Optimism Bridge
- Harbor experienced an attack on its stablecoin creation and vaults
- The exact amount stolen from Harbor is currently unknown
Hot Take
The sustained losses in the crypto industry due to hacks and fraud highlight the urgent need for enhanced security measures. The prevalence of attacks on DeFi platforms raises concerns about the vulnerability of decentralized systems. As the crypto market continues to expand, it is crucial for investors and platform developers to prioritize security and implement robust protection mechanisms to safeguard against malicious activities.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies.Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.
