September 1, 2023

Crypto Market Lost about $16 Mln in August Due To Hacks

Crypto Hacks

Crypto Hacks

In August, hacks and fraud resulted in the loss of $15.8 million in cryptocurrencies, according to a report by Immunfi, a blockchain security firm.

The total amount lost in August was $23.4 million, a significant decrease compared to July’s $320.5 million loss. All the exploits were aimed at decentralized finance protocols, and no centralized finance entities were affected.

Out of the 21 reported security incidents, five occurred on the Ethereum blockchain and four on the BNB Chain. Following its launch on August 9, Coinbase’s Base, a much-awaited layer-2 solution, experienced four security breaches.

In the past month, there have been several instances of significant losses in the cryptocurrency world. One example is the Exactly protocol hack on August 18, where a malicious deposit contract resulted in the theft of 4,323.6 Ether ($7.2 million) in users’ deposits.

Another incident occurred on August 25 with Magnate Finance, a borrowing and lending protocol on Base, allegedly orchestrating a $6.5 million exit scam. A prominent DeFi investigator, zachXBT, claimed that the Magnate Finance deployer address was involved in the scam.

All assets have been removed from the protocol’s smart contract, and its website and social media accounts are offline. According to Immunefi, users have lost $1.25 billion in cryptocurrency due to hacks and fraudulent activities so far this year.

In March, Euler Finance, a DeFi protocol, lost $195 million in a malicious flash loan attack. However, the hacker returned over 90% of users’ assets less than a month later after developers threatened legal action.

July was the worst month for the crypto market this year after recording the highest losses, according to data collected from Web3 outlet De.Fi.

The total losses of the cryptocurrency market in July recorded more than $486 million, more than six times the total in July 2022, which recorded only $80 million.

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