DeFi traders have encountered considerable obstacles in the last three months as hackers increased their efforts to attack weaknesses in cryptocurrency projects. A new report from Immunefi, reveals a startling spike in DeFi hacks and losses. We will take a deeper look into this in this article.
The total number of breaches across blockchains increased by 65% in the second quarter of 2023. This is when compared to the same period last year, according to the research. Despite a 60% decrease in total losses from the previous year, the total amount of hacks climbed by 65%. Moreover, losses through fraud increased by 225%.
A significant amount of the crypto losses were caused by two distinct occurrences. Atomic Wallet, a decentralized wallet, was hacked in June by hackers allegedly involved with the North Korea-linked Lazarus Group, resulting in the loss of $100 million in cryptocurrency. Even though the attack only affected a limited number of customers, Atomic Wallet did not accept responsibility.
Another case included the now-defunct Fintoch website, which vanished in May after stealing roughly $32 million in user payments. Fintoch promised investors a daily interest rate of 1%, but it turned out to be a hoax.
NEWS: 🚨⚡Security breaches surged by 65%, with fraud losses skyrocketing 225% in the last 3 months. #DeFiHacks
— Walletor (@walletorapp) July 6, 2023
According to the analysis, certain blockchain networks were targeted with greater frequency than others. BNB Chain and Ethereum accounted for 77% of all losses in the previous quarter, while Arbitrum accounted for 12%. Notably, there were no events recorded by Arbitrum during the same time period the previous year.
These latest revelations highlight the mounting hazards connected with DeFi platforms, as well as the critical need for improved security measures.
Conclusion
As the crypto ecosystem evolves, it is critical for users to be vigilant and up to date on the latest security standards in order to protect their digital assets from bad actors. Before dealing in any DeFi ventures, traders and investors must exercise extreme caution and undertake extensive due research.
