Initially, more than $208.5 million was lost, but $4.5 million was eventually found, bringing the total amount of lost money to more than $204 million.
According to the “Q2 De.Fi Rekt Report” by Web3 portfolio app De.Fi, hacks and frauds using decentralized finance (DeFi) cost approximately $204 million in the second quarter of 2023. Insights are provided in the research based on information from De.Fi’s “Rekt Database.”
At first, the quarter’s total loss exceeded $208.5 million. Nevertheless, $4.5 million was recovered through a variety of strategies, including legal action, agreements with hackers, and other recovery initiatives.
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![DeFi Security Breaches Soar in Q2, with Over $200M Lost image 217](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/06/image-217.png?resize=838%2C437&ssl=1)
With 117 cases in Q2 compared to only 17 in the same quarter last year, the study shows a marked increase in the number of DeFi hacks. Over the previous year, this amounts to an almost sevenfold increase. In the first half of 2023, losses totaled more than $665 million.
Related: North Korean hackers swipe over $100M from Atomic Wallet users
The top five hacks in the second quarter targeted GDAC, MEV-Boost, Fintoch, Bitrue, and Atomic Wallet. An estimated 17% of the overall losses, or $35 million, were caused by the Atomic Wallet exploit on June 3. The purported rug pull by Fintoch cost $30.6 million in losses, and the MEV-Boost attack cost $26.1 million in losses.
With $75.8 million in losses, or a quarter of the total, “access control issues” were found to be the most frequent reason for losses. These problems relate to situations in which attackers took control of wallets without authorization. The second most frequent reason, accounting for $55.3 million in losses, was exploits. Users lost $47.3 million to rug pulls or exit scams in Q2.
According to the report, “access control issues” are frequently experienced and are the main reason for DeFi losses, necessitating stronger security measures to prevent illegal access.
The increase in DeFi hacking and the sizable amount of money lost highlight the significance of strict security procedures inside the DeFi ecosystem. When investing in or using funds from DeFi projects, investors and users should take prudence and complete full due diligence.
The Q2 De.Fi Rekt Report highlights the need for continual innovation and security advancements to limit risks and safeguard user funds while shedding light on the enduring difficulties and vulnerabilities inside the DeFi market.
Related: Attacker drains $800K from DeFi protocol Sturdy Finance