Crypto Projects Suffered $685.5 Million Losses in Q3 2023
Crypto projects faced a significant financial setback in the third quarter of 2023, with reported losses totaling $685.5 million. This represents a 59.9% increase compared to the $428.7 million losses recorded in Q2 and a staggering 153% increase year-over-year. The major contributors to these losses were exploits on cross-chain protocols, specifically Mixin Network and Multichain, which accounted for nearly half of the total losses. Mixin Network’s exploit in September resulted in a loss of $200 million, while Multichain lost $126 million in July.
Immunefi CEO Mitchell Amador emphasized that this quarter marked the highest loss of the year and highlighted the influence of state-backed actors. The North Korean-supported Lazarus Group, suspected of orchestrating attacks on platforms like CoinEx, Alphapo, Stake, and CoinsPaid, managed to steal a total of $208.6 million, representing 30% of Q3 losses.
Ethereum (ETH) Most Vulnerable Network
Ethereum (ETH) suffered the most vulnerability among networks, accounting for 42.7% of the losses across 35 incidents. BNB Chain and Base, a Coinbase-incubated layer-2 network, also experienced significant losses. Since its launch on August 9th, Base encountered losses in projects like LeetSwap, SwirlLend, Magnate Finance, and RocketSwap.
Hot Take: Crypto Industry Faces Surge in Q3 Losses
The crypto industry experienced a significant surge in financial losses during the third quarter of 2023, primarily driven by major exploits on cross-chain protocols. With reported losses amounting to $685.5 million, this quarter marked the highest loss for the year. The influence of state-backed actors, such as the North Korean-supported Lazarus Group, further highlights the growing threat landscape in the crypto space. As vulnerabilities continue to be exploited, it is crucial for crypto projects and networks to prioritize security measures and strengthen their defenses against potential attacks.
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