Web3 Recorded 428 Mn In Loss During Q3 2022 Globally Report

Most of the Q3 2022 losses were due to two specific projects, Nomad Bridge and Wintermute, totaling USD 350 million

Web3 ecosystem saw losses of USD 428 million in Q3 2022. The losses recorded due to hacks in Web3 space have decreased by more than half since Q3 2021.

The loss of USD 398 million was attributed to hacks across 30 specific incidents and a loss of USD 29 million was due to fraud across nine specific incidents in Q3 2022.

These losses represent a 62.9 per cent decrease compared to Q3 2021, when hackers and fraudsters stole over USD 1 billion.

During the quarter, DeFi has suffered USD 423 million in total losses across 36 incidents while CeFi suffered USD 5 million in total losses across 3 incidents.

The two most targeted chains in Q3 2022 were BNB Chain and Ethereum. BNB Chain suffered the most individual attacks with 16 incidents, representing 28.6 per cent of the total losses across targeted chains, and Ethereum witnessed 13 incidents, representing 23.2 per cent respectively.

Surprisingly, most of the Q3 2022 losses were due to two specific projects, Nomad Bridge and Wintermute, totaling USD 350 million. Together, these two projects represent 79.85 per cent of Q3 losses alone.

The Immunefi report found that there has been a loss of USD 29.8 million due to fraud in Q3 2022, across nine specific incidents.

In the Q3 of 2022, hacks continue to be the predominant cause of losses as compared to frauds, scams, and rug pulls. An analysis of the losses shows that fraud accounts for only 7 per cent of the total losses in the Q3 2022, while hacks account for 93 per cent.