Web3.0 Blockchain projects lost over $2 bn to hackers in 2022 1st half

According to Blockchain auditing and security company CertiK, this year's hacking figure is more than all of 2021 combined. About $308 million were lost across 27 flash loan attacks in the second quarter, from $14 million in Q1. Flash loans are a decentralised finance (DeFi) mechanism that lets borrowers access extremely large amounts of cryptocurrency for very short periods of time.

Blockchain projects around Web3.0 lost more than $2 billion to hacks and exploits in the first six months this year, a new report has shown.

According to Blockchain auditing and security company CertiK, this year's hacking figure is more than all of 2021 combined.

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About $308 million were lost across 27 flash loan attacks in the second quarter, from $14 million in Q1.

Flash loans are a decentralised finance (DeFi) mechanism that lets borrowers access extremely large amounts of cryptocurrency for very short periods of time.

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If used maliciously, flash loans can be used to manipulate the value of a certain token on exchanges or buy up all of the governance tokens in a project and vote to withdraw all of the funds, as happened to Beanstalk in April, reports The Verge.

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About $37.46 million was lost to "rug pulls" in Q2, down 16.5 per cent from the previous quarter.

A rug pull in the crypto industry is when a development team suddenly abandons a project and sells or removes all its liquidity.

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Another report from Immunefi, a leading bug bounty platform, claimed this week that the global cryptocurrency market lost at least $670 million in the April-June quarter (Q2), and 97 per cent of the losses were due to hacks and scams.

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The crypto losses in the second quarter were up 52 per cent from $440 million in the same period last year.

"The majority of these funds was lost by four specific projects, Beanstalk known as a decentralized stablecoin protocol, the Harmony Horizon Bridge, Mirror Protocol, and Fei Protocol," according to data from Immunefi.

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Nearly 46,000 Americans reported losing over $1 billion in crypto to scams since early 2021, according to a recent Federal Trade Commission (FTC) report.

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