Crypto Market Records $656M in Hacks and Scams in H1 2023

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The crypto industry continues to capture global attention, attracting both investors seeking profitable opportunities. However, the crypto industry suffered huge losses of around $656 million owing to hacks, scams, and rug pulls in the first half of 2023.

A recent report compiled by Web3 security firm Beosin highlighted 108 Protocol attacks, resulting in a loss of $471.43 million. Additionally, phishing scams accounted for $108 million in losses, while 110 instances of rug pulls resulted in losses of $75.87 million.

Crypto Hacks: Reduction in Losses

However, the security firm noted that there has been a substantial decrease in the total loss from hacks in Web3 when comparing H1 2023 with the previous year.

The total loss from attacks in H1 2022 was estimated to be $1.91 billion, underscoring the serious consequences of hacking activities during that time. The losses fell somewhat to about $1.69 billion in the second half of 2022. However, the stated losses fell dramatically to $470 million in the first half of 2023.

Distribution of Hacking Losses

In a comprehensive dashboard compiled by Beosin and Footprint Analytics, it was revealed that only one project suffered a hack exceeding $100 million during H1 2023. This incident involved Euler Finance, which experienced a flash loan hack resulting in a loss of $195 million. The hack caused significant disruption and concern within the crypto community. 

However, the situation took a positive turn as the hackers returned most of the stolen assets. Euler Finance promptly opened redemptions on April 12, ensuring affected investors had the opportunity to recover their funds. 

While there was a significant loss exceeding $100 million, the majority of incidents fell within the lower ranges of losses.  Beosin reported seven instances with losses ranging from $10 million to $100 million, and a total of 23 incidents with losses ranging from $1 million to $10 million.

Improvement in Stolen Assets Recovery

Furthermore, Beosin highlighted that there was a significant improvement in the recovery of stolen assets in H1 compared to the previous year. According to the details, about $215 million of stolen assets were successfully recovered, accounting for 45.5% of all stolen assets. This represents a substantial increase in recovery efforts, especially when compared to the recovery rate of only 8% in 2022.

It is important to mention, however, that a portion of the stolen assets, totaling $113 million, was transferred to mixers. $45.38 million was placed into Tornado Cash, a prominent privacy-focused mixer, while $68.14 million was transferred into other mixers. 

 

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