Ethereum

Base

Magnate Finance

Billion

<![CDATA[<figure class="image"><img src="https://cimg.co/news/123910/327370/web3-hacks-1.jpg" alt="" srcset="https://cimg.co/news/123910/327370/responsive-images/web3-hacks-1___media_library_original_1200_800.jpg 1200w, https://cimg.co/news/123910/327370/responsive-images/web3-hacks-1___media_library_original_900_600.jpg 900w, https://cimg.co/news/123910/327370/responsive-images/web3-hacks-1___media_library_original_720_480.jpg 720w, https://cimg.co/news/123910/327370/responsive-images/web3-hacks-1___media_library_original_600_400.jpg 600w, https://cimg.co/news/123910/327370/responsive-images/web3-hacks-1___media_library_original_300_200.jpg 300w" sizes="100vw" width="1200" class="content-img"><figcaption>Source: Pixabay / Canva</figcaption></figure>Web 3 platforms have lost over $1.2 billion so far this year in hacks and rug pulls, according to a <a href="https://assets.ctfassets.net/t3wqy70tc3bv/2lnio53dT8rCXhIu0OtIkj/6123bf5e8ed528c448fdb4342339d1e0/Immunefi_Crypto_Losses_In_August_2023.pdf">report from web3 bug bounty platform Immunefi</a>.&nbsp;The report revealed a total of 211 separate incidents contributing to this massive sum, with the month of August alone accounting for $23.4 million in losses.The surge in losses during August mostly contributed to projects hosted on the newly launched Ethereum Layer 2 Base network.&nbsp;This Coinbase-incubated network experienced vulnerabilities across four distinct projects since its unveiling on August 9th.&nbsp;As per the report, Ethereum faced the most significant number of attacks, with five distinct incidents affecting protocols built on the network.&nbsp;<h2 id="bnb-chain-and-base-witness-heavy-losses-due-to-hacks">BNB Chain and Base Witness Heavy Losses due to Hacks</h2>BNB Chain and Base both experienced four incidents each, with exploitations identified in projects like LeetSwap, <a href="https://cryptonews.com/news/base-linea-users-lose-460000-as-swirllend-vanishes-suspected-exit-scam.htm">SwirlLend</a>, Magnate Finance, and RocketSwap.&nbsp;Together, these three chains collectively accounted for a substantial 62% of all losses in the month of August.The analysis also delves into the types of attacks that have contributed to these losses.&nbsp;Hacks have emerged as the dominant cause of financial setbacks, overshadowing fraud.&nbsp;In August, hacks were responsible for a staggering $15.8 million in losses, constituting a substantial 67.7% of the total monthly sum.&nbsp;As reported earlier, <a href="https://cryptonews.com/news/magnate-finance-website-goes-offline-as-users-fear-64-million-exit-scam.htm">Magnate Finance rug pulled</a> with over $6.5 million in funds.&nbsp;<a href="https://cryptonews.com/news/balancer-protocol-exploited-for-900k-despite-prior-vulnerability-alert.htm">Balancer Protocol was also exploited</a> this month for nearly $900,000, just a few days after a critical vulnerability was reported affecting a number of V2 pools.&nbsp;Comparatively, fraud accounted for $7.6 million, making up the remaining 32.3%.The study indicates that decentralized finance (DeFi) platforms were the primary targets for exploits in August. Centralized platforms managed to evade major incidents during this period.Immunefi also dispersed over $80 million in bounties, contributing to the prevention of over $25 billion in potential user fund losses across various protocols including Chainlink, The Graph, Synthetix, and MakerDAO.
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Web3 Loses $1.2 Billion to Hacks and Rug Pulls so far in 2023: Report

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