According to a report by Web3 security firm Beosin, the first half of 2023 witnessed a total value of cryptocurrencies lost amounting to $656 million due to hacks, scams, and rug pulls. The losses included $471.43 million from 108 protocol attacks, $108 million from phishing scams, and $75.87 million from 110 rug pulls. However, the report also highlighted that approximately $215 million of stolen assets were recovered, accounting for 45.5% of all stolen assets, which is a significant improvement compared to 2022 when only 8% was recovered.
In terms of hacking incidents, there was a notable decrease compared to the second half of 2022, with losses of $1.91 billion and $1.69 billion, respectively. The largest single hack during H1 2023 was Euler Finance’s flash loan hack, resulting in a loss of $195 million. Fortunately, most of the stolen assets were returned by the hackers, and redemptions for the affected project were opened on April 12.
The majority of crypto losses in H1 2023 were coins and tokens minted on the Ethereum (ETH) blockchain, accounting for 75.6% of the total. BNB tokens, the second-largest stolen asset class, constituted only 2.6% of the losses.
When analyzing the causes of the losses, smart contract vulnerabilities accounted for 56%, while 21.4% had no clear identifiable reasons for their loss. However, the numbers demonstrate a significant improvement compared to H2 2021, where a record $2.1 billion in crypto was lost due to hacks, phishing scams, and rug pulls.
The findings of the report indicate the ongoing importance of cybersecurity in the crypto industry. Projects need to remain vigilant in addressing smart contract vulnerabilities and implementing robust security measures to safeguard users’ assets. Despite the decrease in losses compared to previous periods, hackers and scammers continue to exploit weaknesses in the ecosystem.
Conclusion
The Web3 Security Report for H1 2023 highlights the decreasing trend in cryptocurrency losses from hacks, scams, and rug pulls. While the recovery of stolen assets has improved, the industry must stay proactive in addressing vulnerabilities and enhancing security measures to protect participants in the crypto space.