According to a report by SlowMist, the crypto ecosystem has suffered losses of over $30 billion in 1,101 documented incidents between 2012 and the present day. This staggering amount represents nearly 3% of the current market capitalization of listed cryptocurrencies.
The report identifies the top five most common types of hacks as smart contract vulnerabilities, rug pulls, flash loan attacks, scams, and private key leaks. Out of all the incidents, exchange hacks accounted for the highest losses, with over $10 billion lost in the past decade. Other significant categories include Ethereum ecosystem hacks, BNB Smart Chain ecosystem hacks, EOS ecosystem hacks, and hacks related to nonfungible tokens (NFTs).
Early notable attacks on the Bitcoin network included the 2014 Mt. Gox hack and the 2016 Bitfinex hack. Mt. Gox, once the largest Bitcoin exchange globally, filed for bankruptcy after discovering that 850,000 BTC belonging to its customers (worth $25.2 billion at the time) had been stolen through discreet hacks over several years. The exchange has managed to recover 200,000 BTC ($6.1 billion) and is working towards redistributing them to creditors.
Similarly, Bitfinex experienced a security breach in 2016, resulting in the loss of 119,576 BTC valued at around $70 million at the time ($3.7 billion at present). Special agents from the United States Department of Justice recovered 94,000 stolen BTC on February 8, 2022.
While security incidents peaked in the early 2010s and from 2019 to 2021, there has been a relative decline in hack events since 2022, aligning with other reports. However, the losses incurred highlight the urgent need for both projects and users to prioritize robust security measures in the crypto space.