Web3 ecosystem lost over $428M to hacks, scams in Q3 Immunefi

The web3 ecosystem lost over $428.7 million to 39 exploits in Q3. This is down 62.9% compared to his over $1 billion lost in the same period in 2021. The Nomad Bridge and Wintermute hacks accounted for his 79.85% ($350 million) of all recorded losses.

Leading bug bounty company Immunephi The details Crypto Loss Report About $398.9 million was lost in 30 hacks. By comparison, nine fraud cases resulted in claims of approximately $29.8 million.

Over 98% of losses occurred on DeFi platforms, with 36 incidents totaling $423.4 million. CeFi exchanges lost $5.2 million on his three deals.

The majority (51.8%) of DeFi platforms attacked were on the BNB and Ethereum chains. Attacks on the Solana and Avalanche chains accounted for 6.8% of all losses.

Nomad & Wintermute Hack

On August 2nd, cross-chain protocol Nomad Bridge was hit with an exploit that drained 100% of its liquidity worth around $190 million. A hacker stole about 100 of his WBTCs from the bridge and released an exploit his code that allowed hundreds of attackers to “copy and paste” addresses to exfiltrate the protocol.

Market maker Wintermute lost $160 million in a hot wallet breach on September 20th. The exploit was related to a profanity vanity address flaw that the attackers used to exfiltrate around 90 crypto assets.

Loss amount in 2022

Since the beginning of 2022, the crypto ecosystem has lost around $2.3 billion to hackers and scammers.

By the end of Q1, total cryptocurrency losses reached $1.2 billion, with Ronin Network and Wormhole bridge accounting for over 70% of losses. More than $670 million was lost in the second quarter, with Beanstalk and Harmony Horizon collectively losing $282 million.

Many of the affected projects worked with blockchain security companies to recover up to $93.8 million, representing 4% of total losses. Some of the hardest-hit projects, such as Axie Infinity and Nomad bridge, have recovered $30 million and he’s $36.4 million, respectively.