Over $4 billion was lost last year, according to Immunefi. When over $8 billion was stolen, the amount of capital to lose track of was down by over 50 percent.
According to Adrian Hetman, the tech lead of the triaging team at Immunefi, a combination of hacks and fraud is what defines a CRYPTO LOSS. The majority of losses were from hacks. A total of $175 million was lost to fraud in the same period.
The implosion of the Terra/LUNA platform and the downfall of FTX were some of the catastrophic events experienced by both Defi and Cefi. Immunefi stated that De Fi was the main target for successful exploits.
The defi losses increased from over $2 billion to $3.18 billion in just two years. Cefi losses fell from $6 billion in nine incidents in 2021 to $768.8 million in 13 incidents in 2022.
There were 65 and 49 attacks on the BNB Chain and the layer-1Blockchain of the year. Over half of the attacks on the ledger were done by BNB Chain and ether. Solana had 12 incidents, or 6.7% of the total attacks in the year.
Every quarter had at least one multimillion-dollar loss. Half of the total losses in the year were accounted for in the fourth quarter, with a total of $1.62 billion.
The five major exploits were Ronin Network $625 million, Wormhole $326 million, BNB Chain $570 million, and FTX $650 million.
The total losses were recovered in less than 2% of the time.
With more players entering the space and capital pouring in, it is expected that losses will be in the billions again. Enhanced security measures will be used to fix this long term.
Bug bounty and security services platforms that aim to protect web3 businesses and their users, but until these are implemented across the industry as a standard, more will fall to these hacks and fraudulent activities
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