Crypto losses in 2022 dropped 51% yr on yr to $4B


A screenshot of a chart showing all the crypto losses due to hacks and frauds in 2022

Immunefi’s Crypto Losses 2022 report discovered over $3.9 billion was “misplaced” final yr. Whereas which may look like a whopping quantity of capital to lose monitor of, it’s down 51.2% in comparison with 2021, when over $8 billion was stolen, the report discovered.

Crypto losses are outlined as a mixture of hacks and alleged fraud incidents, Adrian Hetman, tech lead of the triaging staff at Immunefi, beforehand instructed TechCrunch. In 2022, the vast majority of losses, or $3.77 billion, have been from hacks throughout 134 particular incidents. About $175 million was misplaced to fraud throughout 34 incidents in the identical time-frame.

Each decentralized finance (DeFi) and centralized finance (CeFi) skilled main catastrophic occasions, together with the implosion of the Terra/LUNA ecosystem and the downfall of centralized crypto trade FTX. However general, DeFi was the primary goal for (profitable) exploits at over 80%, Immunefi acknowledged.

DeFi losses elevated 56.2% from over $2 billion throughout 107 incidents in 2021 to $3.18 billion throughout 155 incidents in 2022. CeFi losses, meantime, fell 87.3% from $6 billion throughout 9 incidents in 2021 to $768.8 million throughout 13 incidents in 2022.

The 2 most focused blockchains final yr have been BNB Chain — crypto trade Binance’s blockchain ecosystem — and the layer-1 blockchain Ethereum, with 65 and 49 incidents, respectively. Collectively, BNB Chain and Ethereum represented over half of the blockchain assaults at 63.3%. Trailing behind the 2 was Solana, with 12 incidents, or 6.7% of complete assaults in 2022.

A screenshot of a chart showing all the crypto losses due to hacks and frauds in 2022

Picture Credit: Immunefi (opens in a brand new window)

Trying again, each quarter had a handful of multimillion-dollar losses, some larger than others. Whereas every quarter had its losses, the fourth quarter noticed probably the most, with $1.62 billion in complete losses throughout 55 incidents, accounting for nearly half of the overall losses within the yr.

However 5 main exploits, Ronin Community’s $625 million, Wormhole’s $326 million, Nomad’s $190 million, BNB Chain’s $570 million and FTX’s $650 million, accounted for about 60% of all losses in 2022.

Roughly 5%, or $204 million, of complete losses have been recovered in 2022.

Trying ahead to 2023, it’s anticipated that crypto “losses” might be within the billions once more as extra gamers enter the house and capital continues to pour in. Fixing this long run might be a product of enhanced safety measures, one thing not all tasks, blockchains, protocols and different digital asset entities have prioritized.

There are additionally bug bounty and safety companies platforms that purpose to guard web3 companies and their customers — however till these are applied throughout the trade as a normal, extra will fall to those hacks and fraudulent actions.

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