In the second quarter of 2023, over $300 million in digital assets fell victim to cryptocurrency hacks and exploits, as reported by CertiK, a blockchain security company. The quarterly report compiled by CertiK revealed that there were a total of 212 security incidents during that period, resulting in the malicious draining of $313,566,528 from Web3 protocols. However, compared to the second quarter of the previous year, which saw losses amounting to $745 million, there was a noticeable 58% decline in the total amount lost.
Although the overall amount lost was lower than in 2022, the second quarter of 2023 witnessed an increase in the value lost to exit scams. These scams accounted for approximately $70 million, nearly double the losses experienced in the first quarter, which amounted to around $31 million.
Conversely, losses stemming from flash loans and oracle manipulation exploits significantly decreased in the second quarter compared to the first quarter of 2023. The first quarter witnessed a total of 52 oracle manipulation attacks, resulting in losses of approximately $222 million. Notably, the Euler Finance hack contributed to 85% of these losses. In contrast, the second quarter saw 54 flash loan and oracle manipulation attacks, leading to losses of around $23 million—a substantial 89% decline compared to the previous quarter.
Crypto hacks and exploits
Additionally, CertiK’s analysis pointed out that among the blockchains studied, BNB Chain experienced the highest number of incidents, with 119 recorded, resulting in losses amounting to $70,711,385. Ethereum followed closely behind with 55 incidents, causing hackers to gain $65,999,953.
Another report from PeckShield revealed that approximately half of stolen non-fungible tokens (NFTs) were being sold by malicious actors within just three hours of being stolen. This indicates that hackers are swift in offloading their unlawfully acquired NFTs shortly after committing the theft.
These findings shed light on the ongoing security vulnerabilities within the cryptocurrency industry. Despite a decrease in the total losses compared to the previous year, the rising prevalence of exit scams poses new challenges. On the other hand, the decline in losses resulting from flash loans and oracle manipulation attacks suggests that countermeasures may be more effective in mitigating these types of exploits. Continuous efforts to enhance security protocols and awareness remain crucial in safeguarding digital assets and preserving trust in the evolving world of cryptocurrencies
