How Much Did We Lose?
In what can only be described as a rollercoaster ride for the crypto world, hackers and scammers collectively made away with a shocking $452 million in the first quarter of 2023. While that sounds like a massive blow to our wallet, it’s less than a third of the staggering $1.3 billion lost in the same period the previous year. Silver linings, anyone?
The Breakdown of the Big Haul
It’s not every day you get to dissect robbery statistics, but here we go. Almost half of this quarter’s losses, approximately $215 million, came within the first three weeks of March. The culprits? Two significant exploits:
- Euler Finance: A whopping $196 million
- Bonq DAO: A not-so-small $120 million
If it makes you feel any better, the Ethereum blockchain took the biggest financial hit, despite the Binance network having the most hacks overall (18 to 10). Talk about taking one for the team!
Meet Others in the Crime Report
Following Euler Finance and Bonq DAO, other mischief makers included:
- CoinDeal: $45 million swiped
- Monkey Drainer: A cute name for a serious crime, totaling $16.5 million
These numbers certainly add weight to the ongoing conversation about security in the crypto space, doesn’t it?
What Type of Crimes Are Happening?
In a detailed analysis of 49 cases, it was found that six flash loan attacks were responsible for over $200 million in losses, with Euler Finance cheesecake-ing most of that pie. Smart contract exploits dominated in frequency, totaling 17 incidents, while decentralized finance (DeFi) faced just five incidents—yet somehow still accounted for a staggering $336 million of the total losses.
Recovery Rates: The Good News?
In another plot twist, $130 million from those nefarious exploits was actually recovered, all in March, with Euler Finance hackers heroically returning around $129 million. In comparison, back in Q1 2022, a more generous $520 million was recovered, which constituted 40% of all stolen funds. Fast forward to 2023, and we’re sitting at a recovery rate of about 28.7%.
What’s Next for Crypto Security?
As the landscape continues to shift, individuals in retail are likely to feel the impact of losses from decentralized exchanges and other crypto tokens. With scams evolving at warp speed, remaining vigilant is key.
“Scam artists and hackers are simply finding new ways to dress old tricks.”
With law enforcement amping up pressure, one can only hope that the next quarter brings better security practices and less money lining the pockets of these high-tech bandits.
