Web3 Security Report Beosin Reveals Decrease in Crypto Losses During First Half of 2023
What we are going to learn?
How much cryptocurrency was lost to scams, hacks, and rug pulls in H1 2023?
According to the report, the total value of cryptocurrencies lost amounted to $656 million, representing a significant decline compared to previous periods.
The report indicates that out of the total losses, $471.43 million resulted from 108 protocol attacks, $108 million from various phishing scams, and $75.87 million from 110 rug pulls. However, this marks a considerable decrease when compared to the losses incurred during H2 2022, where $1.69 billion and $1.91 billion were lost, respectively.
One notable incident mentioned in the report was the Euler Finance flash loan hack, where hackers stole $195 million on March 13. However, the majority of the stolen assets were returned, and redemptions for the affected project were opened on April 12.
Which Blockchain Crypto Investors Lost More Money in 2023?
In terms of the distribution of stolen assets by blockchain, Ethereum-based coins and tokens accounted for 75.6% of the losses, while Binance Smart Chain tokens represented only 2.6% of the total losses.
What were the primary reasons behind the cryptocurrency losses?
Smart contract vulnerabilities were identified as the primary cause of loss, accounting for 56% of the incidents. Additionally, 21.4% of the losses had no clear identifiable reasons. Other causes included private key compromise, arbitrage attacks, misconfigurations, man-in-the-middle attacks, price manipulation, and other factors.
How successful were recovery efforts during this period?
The report also highlights that approximately $215 million of stolen assets were successfully recovered during H1 2023, accounting for 45.5% of all stolen assets. This recovery rate is significantly higher than the 8% recorded in 2022. Furthermore, $113 million of stolen assets were traced to mixers, with $45.38 million transferred into Tornado Cash and $68.14 million into other mixers.
Beosin’s latest Web3 security report demonstrates a decrease in cryptocurrency losses during the first half of 2023, highlighting progress in addressing vulnerabilities within the crypto ecosystem. The improved recovery rate of stolen assets and the decline in total losses signify positive developments. However, ongoing efforts to enhance security measures and educate users remain crucial to further strengthen Web3 security.