July 16, 2024
Immunefi, Web3 Loses $1.8B to Hacks and Fraud in 2023
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Immunefi: Web3 Loses $1.8B to Hacks and Fraud in 2023

In 2023, a report from blockchain security platform Immunefi on December 28 revealed that the Web3 ecosystem encountered significant challenges, witnessing a total loss of $1.8 billion due to hacking and scams. The Lazarus Group, linked to North Korea, was identified as the source of 17% of these losses.

The most impactful incident of the year involved the peer-to-peer trading platform Mixin Network, resulting in over $200 million in losses for cryptocurrency investors. Following closely, the lending platform Euler Finance experienced the second-largest hack with losses amounting to $197 million, and in the third position was the $126-million hack of the cross-chain bridge protocol Multichain.

Law enforcement attributed approximately $309 million in losses to the Lazarus Group, encompassing incidents like the Atomic Wallet hack ($100 million), CoinEx ($70 million), Alphapo ($60 million), Stake, CoinsPaid, and others.

Notably, the majority of losses, totaling $1.6 billion, were a result of hacks and exploits, whereas only $103 million was associated with clearly identifiable fraud schemes such as rug pulls.

Among these losses, $1.3 billion occurred in protocols claiming to be decentralized, contrasting with the $409 million in losses from centralized finance (CeFi) crypto protocols, as indicated in the report. Remarkably, the reported $1.8 billion in losses represented more than a 52% decline from the previous year when Chainalysis reported over $3.8 billion in stolen funds.

Photo by Tima Miroshnichenko

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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