Immunefi has made an 18-page research report that talked about crypto losses in Q3 2023. Its report states, “The crypto industry has seen a loss of $685.5 Million across the web3 ecosystem.” Also, “$662.8 Million was lost to hacks across 49 specific incidents, and $22.6 Million was lost to fraud across 27 specific incidents.”
Crypto Losses in Q3 2023
Immunefi, one of the leading bug bounty and security service platforms for Web3 has evaluated the volume of crypto funds lost by the community due to hacks and scams in Q3 2023. It must be noted that the platform has protected over $60 Billion in user funds.
Immunefi report states the global Web3 space was valued at over $934 Billion in 2022. That capital represents an unparalleled and attractive opportunity for Black Hat hackers.
The platform reviewed all instances where Black Hat hackers have exploited various crypto protocols. It also reviewed cases of protocols that have allegedly performed a rug pull in Q3 2023. Immunefi located 76 such instances, including both successful and semi-successful hacking attempts as well as alleged fraud.
In total, Immunefi saw a loss of $685,510,444 across the web3 ecosystem in Q3 2023. About $662,850,580 was lost to hacks in Q3 2023 across 49 specific incidents and $22,659,864 was lost to fraud across 27 specific incidents.
Most of that sum was lost by two specific projects: Mixin Network, a transactional network for digital assets, and Multichain, a cross-chain router protocol. This number showcases a 59.9% increase as compared to Q3 2022 when hackers and fraudsters stole $428,718,083.
Immunefi Highlights “Key Takeaways”
According to Immunefi’s report, the two major exploits of the quarter totaled $326.00 Million alone, accounting for 47.5% of all losses in Q3 2023. While hacks continued to be the predominant cause of losses at 96.7% in comparison to frauds, scams, and rug pulls which amounted to only 3.3% of the total losses.
Notably, decentralized finance (DeFi) continued to be the main target of successful exploits at 72.9% as compared to centralized finance (CeFi) at 27.1% of the total losses.
Additionally, the most targeted chains include Ethereum which suffered the most individual attacks with 35 incidents. Coinbase’s Base followed it with 4 incidents and Optimism with 3 incidents. “Avalanche, Arbitrum, zkSync Era, and Fantom each had 2 incidents. Solana, and others, followed with 1 incident each,” as per the Immunefi report.
As Immunefi further added, about $61.16 Million has been recovered from stolen funds in 6 specific situations. This number makes up 8.9% of the total losses in Q3 2023.