Multichain

RocketSwap

Discord

Mixin

Crypto projects experienced a significant increase in financial losses during Q3 2023, amounting to $685.5 million, driven largely by major exploits on key cross-chain protocols. 
The third quarter of 2023 saw a significant financial setback for the crypto industry, with reported losses amounting to $685.5 million. According to a <a href="https://assets.ctfassets.net/t3wqy70tc3bv/281FPX3g6liwuWgm1AGYiR/e05f679fc8890c7fdf34f43a5528c86b/Immunefi_Crypto_Losses_in_Q3_2023_Report.pdf" data-type="link" data-id="https://assets.ctfassets.net/t3wqy70tc3bv/281FPX3g6liwuWgm1AGYiR/e05f679fc8890c7fdf34f43a5528c86b/Immunefi_Crypto_Losses_in_Q3_2023_Report.pdf" target="_blank" rel="noopener noreferrer nofollow">study</a> released today from web3 bug bounty platform Immunefi, these Q3 losses have surged by 59.9% compared to the $428.7 million recorded in Q2. Year-over-year, incidents rose by a staggering 153%. 
Of the Q3 setbacks, notable exploits on cross-chain protocols – <a href="https://crypto.news/mixin-network-temporarily-halts-operations-following-200m-defi-exploit/" data-type="link" data-id="https://crypto.news/mixin-network-temporarily-halts-operations-following-200m-defi-exploit/" rel="noopener noreferrer nofollow">Mixin Network</a> and <a href="https://crypto.news/multichain-halts-operations-following-ceo-arrest-in-china-lost-access-to-servers/" data-type="link" data-id="https://crypto.news/multichain-halts-operations-following-ceo-arrest-in-china-lost-access-to-servers/" rel="noopener noreferrer nofollow">Multichain</a> – constituted almost half the total losses. These two incidents led to a loss of $326 million, with Mixin Network’s unfortunate $200 million exploit in September and Multichain’s loss of $126 million in July. 
Mitchell Amador, Immunefi’s CEO, highlighted that this quarter marked the highest loss for the year, accentuating the influence of state-backed actors. 
Furthermore, the North Korean-supported <a href="https://crypto.news/lazarus-group-hackers-from-country-with-no-internet-threaten-defi/" data-type="link" data-id="https://crypto.news/lazarus-group-hackers-from-country-with-no-internet-threaten-defi/" rel="noopener noreferrer nofollow">Lazarus Group</a>, suspected of orchestrating attacks on platforms like CoinEx, Alphapo, Stake, and CoinsPaid, managed to abscond with a total of $208.6 million, which constitutes 30% of Q3 losses. 
 You might also like: <a href="https://crypto.news/discord-and-twitter-hacks-result-in-crypto-losses-of-6m/" rel="noopener noreferrer nofollow"> Discord and Twitter hacks result in crypto losses of $6m </a> 
In terms of network vulnerability, Ethereum (<a href="https://crypto.news/price/ethereum/" data-type="link" data-id="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) bore the brunt, registering 42.7% of the losses across 35 incidents. BNB Chain and the Coinbase-incubated layer-2 network Base also saw significant losses, with the latter experiencing losses in projects like LeetSwap, SwirlLend, Magnate Finance, and RocketSwap since its launch on Aug. 9. 
<figure class="wp-block-image size-large"> <a href="https://assets.ctfassets.net/t3wqy70tc3bv/281FPX3g6liwuWgm1AGYiR/e05f679fc8890c7fdf34f43a5528c86b/Immunefi_Crypto_Losses_in_Q3_2023_Report.pdf" target="_blank" rel="noopener noreferrer nofollow"><img decoding="async" loading="lazy" width="1024" height="519" src="https://crypto.news/app/uploads/2023/10/Web-capture_2-10-2023_104334_assets.ctfassets.net_-1024x519.jpeg" alt="Crypto losses reach $685m in Q3, amount to $1.3b in 2023 - 5" class="wp-image-14199889"></a> 
 <figcaption class="wp-element-caption">
 The crypto industry losses in Q3 2023 | Source: <a href="https://assets.ctfassets.net/t3wqy70tc3bv/281FPX3g6liwuWgm1AGYiR/e05f679fc8890c7fdf34f43a5528c86b/Immunefi_Crypto_Losses_in_Q3_2023_Report.pdf" target="_blank" rel="noopener noreferrer nofollow">Immunefi</a> 
 </figcaption> 
</figure> 
Decentralized finance (<a href="https://crypto.news/tag/defi/" data-type="link" data-id="https://crypto.news/tag/defi/" rel="noopener noreferrer nofollow">defi</a>) platforms appear to be the primary targets, incurring $499.8 million (72.9% of Q3 losses), which is an 18.5% rise year-over-year. In stark contrast, centralized platforms reported losses amounting to $185.7 million, marking a concerning 3,400% increase from Q3 of the previous year. 
Recovery has been minimal but noteworthy: $61.2 million has been reclaimed from six incidents, a mere 8.9% of Q3 losses. Among these, Curve Finance was successful in <a href="https://crypto.news/curve-finance-exploiter-returns-12-7-million-of-stolen-funds/" rel="noopener noreferrer nofollow">retrieving</a> $5.3 million out of the $24 million taken. Mixin Network’s proactive measure to offer a $20 million “bug bounty” for the return of their stolen funds is still pending. 
 Read more: <a href="https://crypto.news/sim-swap-scams-growing-threat-to-crypto-community/" rel="noopener noreferrer nofollow"> SIM swap scams: growing threat to crypto community </a>

Crypto losses reach $685m in Q3, amount to $1.3b in 2023

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