January 8, 2023

Crypto Industry Lost Around $4 Bln in 2022, Report Says

Cryptocurrencies

Cryptocurrencies

The crypto industry lost more than $3.94 billion in 2022, a report by Immunefi, Web3’s leading bug bounty platform, revealed. 

According to Immunefi’s Crypto Losses in 2022 Report, hacks were the main reason for these losses, accounting for 95.6%, while rug pulls, scams and fraud represented only 4.4% of the total losses. Because of hacks, the crypto industry lost over $3.77 billion in 2022 in 134 specific incidents, according to Coin Telegraph

These abovementioned figures represented a 58.3% increase compared to 2021. In 2021, the crypto industry lost around $2.384 billion only due to the hacks. 

Immunefi revealed that decentralized finance (DeFi) was the most targeted sector, accounting for 80.5% in losses, compared to centralized finance (CeFi) which suffered a loss of 19.5%. In 2022, DeFi lost $3.180 billion across 155 incidents, a number that represents a 56.2% hike compared to 2021, as DeFi suffered $2.036 billion in total losses in 107 incidents. 

Regarding the affected blockchains, the report found that BNB of Binance and Ethereum blockchains were the most targeted chains in 2022, accounting for 63.3% of attacks on the chains. BNB was more affected than Ethereum with 65 incidents, representing 36.1%. while Ethereum represented 27.2% of the attacks with 49 incidents. 

The report also mentioned that the crypto industry lost more than $1.620 billion in the fourth quarter of 2022, a 45% increase compared to the crypto losses in the same period in 2021 (around $739 million). In addition, hacks were the main reason for the losses and DeFi was the main target of the attacks. 

In this regard, CEO of Immunefi Mitchell Amador said such figures give impetus to protect the crypto community from harm and build trust by proactively identifying and addressing vulnerabilities

“Looking at the losses suffered by the community in 2022 is a reminder of the importance of prioritizing security and implementing robust and consistent measures moving into 2023,” Amador added. 

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