In 2021 the value of cryptocurrency-related hacks and fraudulent activities nearly doubled from 2020. In their annual report, Immunefi, a blockchain security firm, estimated that a gargantuan amount of $8,100,159,589 were hacked or stolen in 2021. This has decreased over the following years, but the dwindling number is still extremely large.
To be more specific, this number was $3,948,856,037 in 2022, and it dropped to an even lower $1,803,050,600 in 2023.
According to a recent report by Immunefi, losses from cryptocurrency fraud and hacks have decreased by 12% year-over-year. The report, released on May 30, detailed that $52 million was lost to fraudulent activities and hacks in May, down from over $59 million in the same period last year. This figure also represents a 28% reduction compared to losses reported in April.
The data underscores a continuing trend of diminishing losses in the Web3 industry due to fraud and hacking incidents. Earlier, in March, Immunefi noted a 23% year-over-year decline in losses for the first quarter of 2024. This trend was further corroborated by CertiK’s April report, which recorded the lowest losses on record for that month.
The majority of May’s losses were due to two significant attacks. Gala Games, a Web3 gaming protocol, was hacked, resulting in approximately $21 million in losses. Additionally, a smart contract exploit targeted Sonne Finance, leading to $20 million in losses. Combined, these two incidents accounted for 78% of the total losses for the month.
Ethereum and BNB Smart Chain were the most targeted networks, with 62% of the attacks in May directed at them. Notably, all the attacks were aimed at decentralized protocols, with no centralized exchanges reporting any loss of funds due to attacks.
As it stands, the Web3 sphere is slowly starting to get a proper footing, and the amount of damaging hacking incidents and fraudulent activities is decreasing year over year. Hopefully, a year like 2021 is far away in the rear-view mirror, but only time will tell.
