TronWeekly

Crypto World News

You are here: Home / Archives for Immunefi

Immunefi

Web3 & Crypto Security Crisis: $1.8 Billion Loss, Shocking Trends

by

Immunefi’s 2023 Annual Report has shed light on the state of security in the Web3 and crypto ecosystem, unveiling a series of alarming statistics and trends. A total of 319 instances, combining successful and semi-successful hacking attempts, as well as alleged fraud, were identified, resulting in a staggering overall loss of $1,803,050,600 throughout the year. The third quarter of 2023 emerged as the most turbulent period, with losses reaching unprecedented levels, totaling over $340 million in September alone. 

image 108

94.3% Of Crypto Losses Attributed To Hacks

Hacks took center stage, comprising 94.3% of the total losses, while frauds, scams, and rug pull accounted for a mere 5.7%. Notably, the Lazarus Group, infamous for high-profile attacks, was responsible for $308,600,000, representing 17% of the total losses in 2023.

image 106

The report highlighted that DeFi remained the primary target of successful exploits, constituting 77.3% of the attacks. BNB Chain surpassed Ethereum as the most targeted chain, suffering 133 incidents, while Ethereum witnessed 95 incidents. The total number of incidents spiked by 89.8% YoY, reaching 319 in 2023, showcasing the escalating sophistication of hacking attempts.

Despite the alarming surge in hacking attempts, the total losses in 2023 represented a 54.2% decrease compared to the previous year, amounting to $3,948,856,037. Notably, $241,701,085 of stolen funds were successfully recovered in 19 instances, constituting 13.4% of the total losses.

image 107

Mitchell Amador, Founder and CEO at Immunefi, remarked:

In 2023, despite a reduction in overall losses compared to the previous year, the Web3 sector experienced a substantial surge in hacking attempts and fraud incidents, with the frequency of such cases nearly doubling. 

Looking ahead to 2024, the report predicts continued growth in new protocols and projects within the Web3 space. With cryptocurrency prices on the rise, the sector may witness unprecedented losses. The persistent challenges related to project infrastructure are expected to remain a significant source of vulnerabilities. 

While DeFi may see increased individual attacks, organized groups are projected to shift focus to CeFi projects, driven by the potential for outsized returns. The battle for cybersecurity in the Web3 ecosystem continues to evolve, posing new challenges for the industry.

Related Reading | Indonesia Tightens Grip, Crypto Exchanges Face Registration Deadline: Report

Web3 & Crypto Under Siege: Attacks Surge 153% In Q3 2023, Leading to $686M In Losses

by

A rece­nt report by blockchain security platform Immunefi reveals a staggering 153% increase­ in attack incidents for crypto and Web3 projects during the­ third quarter of 2023 compared to the same period in 2022.

The data analysis revealed a concerning trend in the crypto industry. Specifically, during Q3 2022, there­ were 30 reporte­d attack incidents. However, this numbe­r skyrocketed to a significant 76 during Q3 2023. These­ attacks resulted in substantial financial losses, amounting to nearly $686 million in the recent quarte­r. This increase is alarming for the crypto industry’s se­curity landscape.

image 10

One notable factor contributing to the increased losses was the occurrence of large-scale attacks, Mitchell Amador, Founder and CEO at Immunefi, said:

Q3 witnessed the highest loss in this year, driven by large-scale attacks such as the one on Mixin Network and Multichain. Statebacked actors played a crucial role as they were allegedly behind several cases this quarter. Their particular focus on CeFi led to a sharp surge in losses within this sector.

Crypto Exploits: Key Takeaways from Q3 2023

The Immunefi report highlights some key takeaways from Q3 2023. Two major exploits during the quarter accounted for a staggering $326 million, constituting 47.5% of all losses in that period. 

Hacks remain the primary cause of losses, accounting for a stagge­ring 96.7% of the total. In contrast, frauds, scams, and rug pulls played a minor role, contributing only 3.3% to the­ overall losses. As for targets, successful exploits primarily targeted De­Fi platforms, making up 72.9% of total losses. The remaining 27.1% we­re attributed to CeFi platforms.

In Q3 2023, Ethere­um and BNB Chain emerged as the­ two most targeted blockchain networks. Ethe­reum faced a total of 35 individual attack incidents, while­ BNB Chain experienced 25 incidents. Additionally, Base protocol, backed by Coinbase­, became a prime targe­t with reported losses across four proje­cts.

The Lazarus Group, a notorious hacking group, cause­d significant losses of $208.6 million in Q3 2023, which accounted for 30% of the total losse­s. They were alle­gedly responsible for high-profile­ attacks on platforms including CoinEx, Alphapo, Stake, and CoinsPaid.

image 11

On a somewhat positive­ note, the report highlights that in six spe­cific cases during Q3 2023, a significant amount of $61,169,000 has been succe­ssfully recovered from stole­n funds. This recovery represents 8.9% of the total losses incurre­d. 

However, these­ findings highlight the immediate necessity for heightene­d security measures in the­ cryptocurrency and Web3 sphere­s due to their escalating e­xposure to threats and vulnerabilitie­s.

Related Reading | Crypto Globalization: Banco de Portugal Governor Urges Global Framework For Stability

Immunefi Report Reveals BNB Chain As Top Target For Rug Pulls In Q1 2023

by

The BNB Chain has become the top target for rug pulls and exploits in the first quarter of 2023, according to a recent report from Immunefi, a blockchain security firm. 

The report stated that over 73.3% of such scams across the entire crypto ecosystem occurred on the BNB Chain during this period. Ethereum also suffered significant losses, accounting for 27.5% of all incidents.

image 17
BNB chain- 33 incidents
,

The study reviewed all instances of black hat hackers exploiting various crypto protocols and cases of protocols allegedly performing rug pulls in Q1 2023. In total, there were 73 such instances, resulting in a loss of $437,483,543 across the Web3 ecosystem. 

Hacks accounted for $418,589,089 across 59 specific incidents, while fraud accounted for $18,894,454 across 15 specific incidents. Euler Finance and BonqDAO were the two projects that lost most of the sum during this period.

Despite the decrease in losses compared to Q1 2022, where hackers and fraudsters stole $1,229,500,867, the report highlights that the rise in targeted attacks and scams on Arbitrum-based projects moving into 2023 is becoming more relevant. 

The protocol recently released its token, and the report shows that token prices drop on average by 20% after hacks, with the majority never recovering.

The report also reveals that DeFi remains the main target of successful exploits at 99.6%, compared to CeFi at 0.4% of the total losses. BNB Chain and Ethereum represent more than half of the chain losses in Q1 2023 at 68.8%. 

In total, $177,250,000 of stolen funds have been recovered across two specific instances, Euler Finance and SperaxUSD. However, this represents just 40.5% of the total losses in Q1 2023.

BNB Chain’s Security Vulnerabilities

The report also sheds light on BNB Chain’s ongoing issues with developers using forked code and its community lacking a security-first approach, which attracts many looking for a quick way to earn money. It may be why the ecosystem continues to see the largest number of exploits and rug pulls.

Adrian Hetman, Tech Lead of the Triaging Team at Immunefi, commented on the findings, stating that:

BNB Chain continues to be the prime target for exploits and scams. That’s why we continue to see the biggest number of exploits and rug pulls in this ecosystem.

The report’s key insights highlight the significant security challenges facing the crypto ecosystem, particularly with the rise in targeted attacks and scams. The community must adopt a more security-focused approach to prevent further losses and protect user funds.

Related Reading | Marathon’s Bitcoin Production Hits Record High In Q1 2023 With 41% Increase