The assets that were stolen have now been recovered, totaling about $215 million.
Beosin, a Web3 security company, reported on June 30 that the entire worth of cryptocurrencies lost in scams, hacks, and other illegal activities during the first half of 2023 was $656 million. These losses total $471.43 million from 108 protocol attacks, $108 million from several phishing schemes, and $75.87 million from 110 rug pulls. Notably, compared to the second half of 2022, the amount lost due to hacking decreased significantly.
Only one project of the reported losses saw a hack that cost more than $100 million. On March 13, Euler Finance was the victim of a flash loan hack that cost the company $195 million. The hackers restored the majority of the stolen assets, and on April 12 the company started redemptions.
In the first half of 2023, 75.6% of all stolen cryptocurrency was stored on the Ethereum blockchain. The second-largest class of stolen assets, however, was Binance Smart Chain tokens, which made up only 2.6% of the total stolen assets.
In 56% of the occurrences, smart contract vulnerabilities were the main cause of the loss of cryptocurrency. In addition, 21.4% of the losses lacked readily apparent causes. But when compared to H2 2021, when a record $2.1 billion was lost as a result of breaches, phishing schemes, and rug pulls, these numbers show a dramatic decline.
The paper emphasizes the persistent dangers and difficulties related to the safety of cryptocurrencies. Despite the fact that losses were lower than in earlier times, this underlines the significance of strong security measures and the need for attention in correcting flaws in blockchain protocols and smart contracts.
Users, projects, and platforms must prioritize security procedures and keep a close eye out for potential risks as the crypto sector develops. A safer and more secure crypto ecosystem can be attained by initiatives to strengthen security controls, carry out exhaustive audits, and increase public knowledge of potential threats.