In a comprehensive analysis of the cryptocurrency landscape, Immunefi, the pioneering bug bounty and security services platform for web3, revealed staggering losses within the industry during Q3 2023. The report, titled “Crypto Losses in Q3 2023,” portrays a grim picture, outlining a total loss of $685,510,444 during the quarter and a staggering $1,388,475,506 year-to-date.
During Q3 2023, the industry experienced a sharp increase in attacks, with a 153% surge in single incidents compared to the same period last year, soaring from 30 to 76. The losses also saw a significant rise of 59.9% compared to Q3 2022, making this quarter the highest loss period in the current year.
Two major exploits marked the quarter, targeting Mixin Network and Multichain, which together accounted for a substantial 47.5% of the overall losses in Q3 2023, totaling a staggering $326,000,000. The notorious Lazarus Group emerged as a key player in the attacks, responsible for stealing $208,600,000, constituting 30% of the total losses. The group allegedly targeted prominent platforms such as CoinEx, Alphapo, Stake, and CoinsPaid.
Hacks remained the primary cause of losses during Q3 2023, accounting for a staggering 96.7% compared to frauds, scams, and rug pulls, which constituted a mere 3.3% of the total losses. DeFi platforms remained the primary target for successful exploits, making up 72.9% of the total losses, while CeFi experienced 27.1%.
Ethereum and BNB Chain emerged as the most targeted blockchains during Q3 2023. Ethereum faced the brunt of the attacks with 35 incidents, followed by BNB Chain with 25 incidents. Base, Optimism, Polygon, Avalanche, Arbitrum, zkSync Era, and Fantom were also targeted, with varying frequencies. Solana and other chains experienced one incident each.
In a glimmer of hope, $61,169,000 of stolen funds were recovered from specific situations during the quarter, constituting 8.9% of the total losses in Q3 2023.
Mitchell Amador, CEO of Immunefi, expressed his concern, stating, “Q3 witnessed the highest loss this year, driven by large-scale attacks such as the one on Mixin Network and Multichain. State-backed 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.”
Immunefi also mentioned that it has paid out substantial bug bounties, exceeding $80 million and safeguarded over $25 billion in user funds.
Their efforts to shed light on the state of the crypto landscape have included recent publications such as the Crypto Losses in Q2 2023 and Q1 2023 reports, the Hacker Ecosystem Survey 2023, the Hacks & Token Prices Report, and the Top Crypto Bounty and Ransom Payouts Report, showcasing their dedication to enhancing industry security.
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