DeFi Hacks, Scams Result in Losing over 204 Mln Dollars in Q2 of 2023

DeFi hacks and scams resulted in losing more than $204 million in the second quarter of 2023, according to a report by Web3 portfolio app De.Fi.

Dubbed “Q2 De.Fi Rekt Report,” the report pointed out that the total amount was really more than $208.5 million but $4.5 million were recovered through prosecutions, deals with hackers and other recovery methods, according to Cointelegraph. The report found that the DeFi hacks increased by seven times year-over-year as 117 incidents were recorded during the period compared with only 17 in the same quarter of 2022.

The total value of losses in the first half of 2023 in DeFi hacks reached more than $665 million so far. The top five hacks of the second quarter were against Atomic Wallet, Fintoch, MEV-Boost, Bitrue, and GDAC. The Atomic Wallet incident represents nearly 17% of the total DeFi hacks with $35 million in losses. 

While Fintoch lost $30.6 million in a rug pull and MEV-Boost lost $26.1 million in an attack. 

It is worth mentioning that the losses from DeFi hacks and scams in the second quarter are less than the first quarter, which recorded more than $320 million. 

The report attributed the main reasons for such losses to access control issues or issues where an attacker gained unauthorized control of a wallet, exploits, rug pulls, and exit scams. 

Worthy to mention also that the total amount of cryptocurrency lost due to hacks, scams, and rug pulls amounted to $656 million in the first half of 2023.

According to Cointelegraph, the $656 million includes $471.43 million lost in 108 protocol attacks, an additional $108 million in various phishing scams and $75.87 million over 110 rug pulls.