Crypto Hacks and Frauds Take Their Toll in August 2023: Report

  • Immunify’s report revealed total losses of $1.2 billion in 2023 across 211 specific incidents.
  • Interestingly, DeFi projects bore the brunt of the losses in August, while CeFi was unchanged.

In a comprehensive ReportImmunefi, a prominent bug bounty and security services platform in the web3 space, has detailed a crypto loss that occurred in August 2023.

Immunify stands to protect $70 billion in user funds within the Web3 ecosystem, boasting a large community of ethical hackers who diligently evaluate blockchain and smart contract code, uncover vulnerabilities, and report responsibly.

This important service ensures that the crypto landscape is protected and these whitehat hackers are rewarded based on the severity of the problems they detect.

One of Immunefi’s pioneering contributions to the Web3 bug bounty landscape is the concept of scaling rewards according to the severity of exploits and the amount of funds at stake. This innovative approach has led to the development of the largest community of security experts in the Web3 domain.

August 2023 Crypto Loss Landscape

The report uncovers a total loss of $1.2 billion in 2023 attributable to hacks and rage pulls for 211 specific incidents. Hacks and fraudulent activity caused $23 million in losses in August alone.

Notably, hacks were the leading cause of losses compared to fraud, scams and anger-pulling. In August 2023, hacks accounted for $15 million in losses, while fraud represented $7 million.

DeFi projects emerged as primary targets for exploitation during this period, with CeFi remaining unscathed by major exploitation. Hacks constituted the bulk of losses, amounting to 67.7% of the total, while fraud contributed only 2.3%.

The August 2023 hack caused a total of $15 million in losses across 13 specific incidents. Fraud, on the other hand, accounted for $7 million in losses across 4 separate incidents. In this context, DeFi projects bore the brunt of the losses, while CeFi remained untouched by major exploitation.

Ethereum [ETH]the base [BASE], and the BNB chain collectively accounted for more than half (62%) of the total chain losses in August. Ethereum endured the highest number of private attacks, with 5 incidents contributing 24% of the total.

Base and BnB chains each witnessed four events, accounting for 19% of total chain losses. Optimism [OP]Arbitram [ARB]Solana [SOL]and snowfall [AVAX] Each experienced one event, representing 4.8% of the total chain loss.

Other chains, such as Phantom [FTM] and Linea [TBA], constituting 14.3% of the total chain events, one event each. It’s worth noting that since its launch in early August, the Coinbase-backed Base Protocol has suffered losses in four projects, sharing the top spot for targeted chains with Ethereum and the BNB chain.

Among the significant losses in August 2023: a loss of $7.3 million to be exact. Magnet Finance lost $6.4 million. Zunami Protocol reported a loss of $2.2 million. Steadefi and Cypher each suffered losses of $1.1 million.

These losses underscore the importance of strong security measures and vigilant monitoring within the crypto space.

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