Ethereum, as indicated by SlowMist’s research, faced the highest losses of $487 million due to rug pulls and hacks in 2023.
Key Takeaways
- Ethereum recorded the highest losses of $487 million in 2023, primarily due to rug pulls and hacks.
- The crypto space experienced a total of 464 security incidents, resulting in losses of nearly $2.5 billion, a 34.2% reduction from 2022.
- Decentralized finance (DeFi) projects were the most targeted, with over 280 security incidents, comprising 60.7% of the total.
- Exit scams were the predominant cause of losses, accounting for 110 cases and approximately $83 million
Ethereum Tops Losses Amid Rising Security Incidents
SlowMist’s latest research report reveals that Ethereum bore the brunt of security incidents in the crypto space, facing the highest losses of $487 million in 2023. This data is part of a comprehensive analysis of 464 security incidents that collectively resulted in losses totaling nearly $2.5 billion.
Ethereum suffered highest losses due to rug pulls and hacks, data shows https://t.co/wN6BYaxllK #News #cryptoscam #DeFi #Ethereum #hack
— OutbackDeFi (@BushOrangutan) January 5, 2024
DeFi Projects Prime Targets
Within the realm of security incidents, decentralized finance DeFi projects emerged as the most frequently targeted sector, experiencing over 280 incidents. These incidents accounted for a substantial 60.7% of the total, emphasizing the vulnerability of DeFi platforms to malicious activities.
Overall Trends in Losses
While the crypto market faced an overall loss of $2 billion in 2023, representing a decline for the first time since 2020, efforts by cybersecurity experts and white hat hackers led to the recovery of about $200 million from the total sum. The largest hack, attributed to Multichain, amounted to $231 million.
To Conclude
Ethereum substantial losses in 2023 underscore the persisting challenges of security incidents in the crypto space, with DeFi projects being particularly susceptible. Exit scams, comprising a significant portion of losses, highlight the need for increased vigilance and regulatory measures.
While the overall losses decreased, the recovery efforts by cybersecurity experts signify a positive stride in fortifying the industry against malicious activities. The report serves as a reminder of the dynamic nature of crypto security and the ongoing efforts to ensure a safer environment for investors and participants.
