Over $204M was lost in Q2 DeFi hacks and scams: Report

Published on:

Over $204 million was lost in decentralized finance (DeFi) hacks and scams in the second quarter of 2023, according to a June 27 report from Web3 portfolio app De.Fi.

The report, titled “Q2 De.Fi Rekt Report,” was partially based on data from De.Fi’s “Rekt Database.” Over $208.5 million was initially lost during the quarter, but $4.5 million was recovered through prosecutions, deals with hackers and other recovery methods.

Funds lost and recovered in Q2 2023. Source: De.Fi

According to the report, the number of DeFi hacks in Q2 rose by “almost 7 times” year-over-year, with 117 incidents during the period compared with only 17 in the same quarter of 2022. A total of over $665 million was lost during the first half of 2023.

The top five hacks of the second quarter were against Atomic Wallet, Fintoch, MEV-Boost, Bitrue and GDAC. The June 3 Atomic Wallet exploit was responsible for $35 million, or around 17% of the total. Fintoch users lost $30.6 million from its alleged rug pull, and the MEV-Boost attack was responsible for $26.1 million. Together, these three attacks resulted in over 45% of the total losses for Q2.

Related: Sturdy Finance offers $100K bounty to hacker if funds are returned

De.Fi reported that the most common cause of losses was “access control issues,” or issues where an attacker gained unauthorized control of a wallet. This was responsible for $75.8 million of losses, or a quarter of the total. The second most common cause was exploits, totaling $55.3 million. Users lost $47.3 million through rug pulls or exit scams in Q2, as well.

Read more:  US commercial bank closes crypto service over regulatory concerns

Losses from DeFi hacks and scams were actually smaller in Q2 than in Q1, with CertiK reporting in April that over $320 million was lost from January to March.

Source: cointelegraph.com