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In the realm of cryptocurrency, everyone is eager to explore its positive side, which promises notable profits compared to other assets, but a darker side hides with significant losses due to scams, hacks, and exploits. Recent data from IntoTheBlock, an on-chain analytic firm, reveals a staggering $58 billion lost in DeFi exploits since July 2020. $58 billion lost in DeFi exploits since 2020 
A thorough analysis of DeFi exploits reveals 123 significant incidents post-COVID, resulting in total losses of $58.78 billion. Despite this, 2023 shows a decrease in losses compared to the previous three years, with the TerraLuna crash in August 2022 marking the largest loss at $40 billion. 
However, it’s important to understand that DeFi attacks fall into two main categories: Economic and Technical. Economic exploits involve the strategic manipulation of key protocol parameters, while technical exploits are executed through malicious manipulation of the protocol’s programmatic functions, often leading to unauthorized fund withdrawals, as observed several times this year. $1.88 billion in DeFi losses in 2023 
In 2023, the DeFi sector faced losses totaling $1.88 billion. As of now, only $213 million has been recovered. Since November 2023, the sector experienced an additional $200 million in losses with no recovery to date. Noteworthy incidents include the exploitation of HACO, resulting in an $86 million loss, KyberSwap with a $45.2 million loss, and other incidents involving HTX and OKX, <a href="https://news.todayq.com/okx-reports-2-7-million-in-crypto-loss-over-recent-attack-data/">causing losses </a>of $21.8 million and $2.3 million, respectively. Source: REKT Database 
Various factors contribute to these losses, including Rugpull, phishing, Oracle issues, and flash loan attacks. Importantly, these DeFi attacks are not isolated actions but are directed by organized groups. The notorious North Korean Lazarus group stands out, having stolen over $2 billion in cryptocurrency over the last five years. 
Additionally, on December 8, 2023, <a href="https://news.todayq.com/u-s-south-korea-japan-discuss-north-koreas-illicit-activities-with-stolen-crypto/">South Korea held a trilateral meeting</a> in Seoul with top security officials from the United States and Japan. The focus was on safeguarding investors and addressing North Korea’s misuse of stolen cryptocurrency to fund its nuclear and missile programs, along with other illegal activities. The discussions aimed to enhance collaboration in tackling these challenges. 
To counter these exploitations, global government authorities are actively working to introduce cryptocurrency regulation bills with comprehensive frameworks. Countries such as Singapore, South Korea, the UK, and the U.S. are in the process of establishing crypto regulations to protect investors and crypto firms. 
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$58 billion Crypto lost in DeFi exploits post-covid: Report

Todayq News

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