Crypto hacks and frauds take their toll in August 2023: Report

Posted: September 1, 2023

• Immunefi’s report unveiled a total loss of $1.2 billion across 211 specific incidents in 2023.
• Interestingly, DeFi projects bore the entire brunt of the losses in August, while CeFi remained untouched.

In a comprehensive report, Immunefi, a prominent bug bounty and security services platform in the web3 space, has detailed the crypto losses incurred in August 2023.

Immunefi stands as a safeguard for over $70 billion in user funds within the web3 ecosystem, boasting a vast community of ethical hackers who diligently assess blockchain and smart contract code, uncover vulnerabilities, and responsibly report them.

This crucial service ensures that the crypto landscape remains secure while rewarding these whitehat hackers based on the severity of the issues they detect.

One of Immunefi’s pioneering contributions to the web3 bug bounty landscape is the concept of scaling rewards according to the severity of exploits and the volume of funds at risk. This innovative approach has led to the development of the largest community of security experts in the web3 domain.

The August 2023 crypto loss landscape

The report unveils a total loss of $1.2 billion attributed to hacks and rug pulls across 211 specific incidents in 2023. August alone witnessed $23 million in losses due to hacks and fraudulent activities.

Notably, hacks remained the predominant cause of losses compared to frauds, scams, and rug pulls. In August 2023, hacks accounted for $15 million in losses, while frauds represented $7 million.

DeFi projects emerged as the primary target for exploits during this period, with CeFi remaining unscathed by major exploits. Hacks constituted the lion’s share of losses, amounting to 67.7% of the total, while frauds contributed to just 2.3%.

Hacks in August 2023 resulted in a total loss of $15 million across 13 specific incidents. On the other hand, frauds accounted for a $7 million loss across 4 distinct incidents. In this context, DeFi projects bore the entire brunt of the losses, while CeFi remained untouched by major exploits.

Ethereum [ETH], Base [BASE], and BNB Chain collectively accounted for more than half (62%) of the total chain losses in August. Ethereum endured the highest number of individual attacks, with 5 incidents contributing to 24% of the total.

Base and BNB Chain each witnessed four incidents, making up 19% of the total chain losses. Optimism [OP], Arbitrum [ARB], Solana [SOL], and Avalanche [AVAX] each experienced one incident, representing 4.8% of the total chain losses.

Other chains, such as Fantom [FTM] and Linea [TBA], constituted 14.3% of the total chain incidents, each contributing one incident. It’s noteworthy that since its launch in early August, Coinbase-backed Base protocol has experienced losses across four projects, sharing the top spot for targeted chains with Ethereum and BNB Chain.

Among the notable losses in August 2023: Exactly suffered a loss of $7.3 million. Magnate Finance incurred a loss of $6.4 million. Zunami Protocol reported a loss of $2.2 million. Steadefi and Cypher experienced losses of $1.1 million each.

These losses underscore the importance of robust security measures and vigilant monitoring within the crypto space.