In 2023, Cryptocurrency Industry Loses $889.3 Million to Hacks and Scams
In the third quarter of 2023, the cryptocurrency industry suffered significant losses amounting to $889.3 million due to various cyber attacks such as hacks, fraud, and rug pulling. Experts from Beosin, a cybersecurity firm, reported that out of this total, $540.16 million was lost in 43 cyber attacks, $282.96 million in 81 rug sweeps, and $66.15 million in phishing scams.
Decentralized Finance Protocols Bear the Brunt
Among the targets of these attacks, decentralized finance (DEFI) protocols were hit the hardest, with 29 attacks accounting for 67.4% of all incidents. The most significant loss was incurred through the Mixin network hack, which resulted in a loss of $200 million. Other platforms such as Curve, CoinEx, Alphapo, and Stake also suffered substantial losses. Notably, Multichain, Bad, and Pepe recalls were the most affected, with losses ranging from $15.5 million to $210 million.
Ethereum and BNB Chain Protocols Hit Hard
In recent attacks, hackers targeted the Ethereum and BNB Chain protocols, causing them to lose $227 million and $37.4 million, respectively. Unfortunately, only 10% of the stolen assets have been recovered so far.
Crypto Ransomware Attacks Increase, but Criminal Activity Falls
During the first half of 2023, there was a surge in crypto ransomware attacks. However, the total amount of money involved in crypto-related crimes decreased by 65%. Specifically, there was a significant decrease of $5.2 billion in illicit cryptocurrency streams used for criminal activities compared to the same period in 2022. Despite this decline, attackers managed to earn an additional $175.7 million through extortion by June 2023, compared to the first half of 2022.
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