Immunefi Reports $265M of Funds Lost in Crypto in Q2 2023: Number of Incidents Grew 65% YoY

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The crypto industry lost $265,481,519 in Q2 of 2023.

Metadata

Provider:

GlobeNewswire, Inc.

Retrieved on:

Thursday, July 6, 2023

Information

Tags:

Crypto, Ethereum, Synthetix, Blockchain, Hacks, Dai (cryptocurrency), Decentralized finance, Chain-link fencing, Optimism, Ministry of National Education (France), TVL, Ecosystem, YTD, BNB, Cryptocurrency

Geotags:

SG, SINGAPORE

Organisation:

IMMUNEFI

Summary

Key Points:

The crypto industry lost $265,481,519 in Q2 of 2023.
The 2 major exploits of the quarter, Atomic Wallet and Fintoch, totaled $131,600,000 alone, accounting for 49.6% of all losses in Q2 2023.
“We have witnessed a considerable increase in rug pulls, both in terms of stolen funds and the number of incidents”, said Mitchell Amador, CEO of Immunefi.
Recently, Immunefi published the Crypto Losses in 2022 , a display of the volume of crypto funds lost by the crypto community due to hacks and scams in 2022, and the Crypto Losses in Q1 2023 , respectively.

Singapore, July 06, 2023 (GLOBE NEWSWIRE) -- Immunefi, the leading bug bounty and security services platform for web3, protecting over $60 billion in user funds, published its Crypto Losses in Q2 2023 Report. The crypto industry lost $265,481,519 in Q2 of 2023. Total losses across the ecosystem reached $702,965,062 in H1 2023.

While the number of total losses is down 60.4% from Q2 2022, most likely due to market conditions affecting the Total Value Locked (TVL) in the ecosystem, attacks spiked: the number of single incidents increased 65.3% YoY from 49 to 81 in Q2 2023, and rose 11% quarter over quarter, from 73 to 81.
The 2 major exploits of the quarter, Atomic Wallet and Fintoch, totaled $131,600,000 alone, accounting for 49.6% of all losses in Q2 2023.
In Q2 2023, hacks continued to be the predominant cause of losses at 83.1% in comparison to frauds, scams, and rug pulls, which amounted to 16.9% of the total losses.
In Q2 2023, DeFi continued to be the main target of successful exploits at 86.1% as compared to CeFi at 13.9% of the total losses.
The two most targeted chains in Q2 2023 were BNB Chain and Ethereum. BNB Chain suffered the most individual attacks with 36 incidents, while Ethereum witnessed 26 incidents. Arbitrum, which had no incidents in Q2 2022, witnessed 10 incidents. The rise in targeted attacks and scams on Arbitrum-based projects continues as we move into 2023. For two consecutive quarters this year, Arbitrum has remained the third most targeted blockchain, reaching a total of 18 significant incidents reported YTD. Remaining targeted chains include Optimism, Terra, Sui Network, and others, all with single incidents.
In total, $10,451,189 has been recovered from stolen funds in 8 specific situations. This number represents just 3.9% of the total losses in Q2 2023.

“We have witnessed a considerable increase in rug pulls, both in terms of stolen funds and the number of incidents”, said Mitchell Amador, CEO of Immunefi. “As bad actors continue to expand their malicious activities and employ increasingly sophisticated scams, users must thoroughly assess projects.”

Immunefi is the largest and most widely adopted bug bounty platform in web3 which is trusted by established, multi-billion dollar projects like Chainlink, Wormhole, MakerDAO, TheGraph, Synthetix, and more. Immunefi has paid out the most significant bug bounties in the software industry, amounting to over $80 million, and has saved over $25 billion in user funds.

The full report is available on Immunefi’s website. Recently, Immunefi published the Crypto Losses in 2022, a display of the volume of crypto funds lost by the crypto community due to hacks and scams in 2022, and the Crypto Losses in Q1 2023, respectively. In addition, Immunefi published the Hacker Ecosystem Survey 2023, a survey of the whitehat community displaying the top challenges, interests, and motivations at play in the web3 security industry, the Hacks & Token Prices Report, an overview of the impact of hacks on the prices of protocols’ native tokens, and the Top Crypto Bounty and Ransom Payouts Report, detailing the most important industry bug bounty payments to date, as well as ransom payments.

About Immunefi
Immunefi is the leading bug bounty and security services platform for web3, which features the world’s largest bounties. Immunefi guards over $60 billion in user funds across projects like Synthetix, Chainlink, SushiSwap, Polygon, Bancor, MakerDAO, TheGraph, Wormhole, Optimism, and others. The company has paid out the most significant bug bounties in the software industry, amounting to over $80 million, and has pioneered the scaling web3 bug bounties standard. For more information, please visit https://immunefi.com

Jonah Michaels
Communication Lead
Immunefi
jonah-at-immunefi.com