According to a recent report by Beosin, a Web3 security firm, the total value of cryptocurrencies lost in scams, hacks, and rug pulls during the first half of 2023 amounted to $656 million. This figure includes $471.43 million lost in 108 protocol attacks, $108 million in various phishing scams, and $75.87 million from 110 rug pulls. However, it is worth noting that these losses represent a significant decrease compared to the second half of 2022 when $1.91 billion and $1.69 billion were lost in hacks.
The report highlights that approximately $215 million of stolen assets were actually recovered, which accounts for 45.5% of all the stolen assets. This recovery rate is significantly higher compared to 2022 when only 8% of stolen assets were recovered. Furthermore, it was revealed that $113 million of the stolen assets were transferred to mixers, with $45.38 million going into Tornado Cash and $68.14 million into other mixers.
Crypto scams
Among the notable incidents mentioned in the report, Euler Finance’s flash loan hack on March 13 stands out as the only project that was hacked for over $100 million. The hack amounted to $195 million, but the majority of the stolen assets were returned by the hackers, and the firm opened redemptions on April 12.
The report indicates that the majority of crypto lost in the first half of 2023 were coins and tokens minted on the Ethereum blockchain, accounting for 75.6% of the total losses. Binance Smart Chain tokens represented the second-largest category of stolen assets but at a significantly lower proportion of 2.6%.
In terms of the reasons behind the losses, the report reveals that smart contract vulnerabilities were responsible for 56% of the total losses. Additionally, 21.4% of the losses had no clear identifiable reasons. However, it is important to note that these numbers represent a significant decrease compared to the second half of 2021 when a record $2.1 billion in crypto was lost due to hacks, phishing scams, and rug pulls.
Beosin’s report provides valuable insights into the cryptocurrency landscape in the first half of 2023. While the total losses are still substantial, there has been a decrease in the frequency and magnitude of hacks and scams compared to previous periods. The recovery rate of stolen assets has also shown a remarkable improvement, offering some hope for victims of such incidents. However, it is crucial for participants in the cryptocurrency space to remain vigilant and take necessary precautions to protect their assets from potential threats.
