Improved Security in August for Crypto
August marked a significant improvement in crypto security, registering the lowest losses of the year according to a report from Immunefi, a leading bug bounty and security service platform. This month, losses due to hacking incidents totaled $15,082,000 across five notable events.
Major Incidents of Loss
The bulk of the losses originated from two key incidents: the Ronin Network, primarily focused on gaming, which lost $12 million, and the DeFi protocol Nexera, suffering a loss of $1.5 million. Compared to previous months, this $15 million loss is indicative of a notable decline, marking a 94.5% decrease from the previous month and a 38% decrease from August 2022, when losses amounted to $24,581,220.
Year-to-Date Losses
Throughout the year, the crypto ecosystem has experienced staggering losses, totaling $1,210,741,330 across 154 separate incidents. May stands out as the most detrimental month, with losses exceeding $358 million, while July followed with $274 million lost. Other months like January, March, and June displayed losses ranging between $133.2 million and $141.5 million, whereas February and April witnessed losses around the $70 million mark.
Dominance of DeFi Hacks
In a noteworthy shift, decentralized finance (DeFi) regained its position as the main area for lost funds in August, with 100% of the total losses attributable solely to DeFi hacks. This represented a significant change, as there were no reported incidents related to centralized finance (CeFi) during the month. The entirety of the $15 million loss arose from hacking incidents rather than fraud.
Targeted Chains and Attack Statistics
Analysis indicates that Ethereum and BNB Chain were the most targeted platforms in August. Ethereum endured three attacks, accounting for 60% of the total losses, while BNB Chain faced two attacks, resulting in 40% of the overall losses for the month. The ongoing trend of hacks highlights the vulnerabilities present within the crypto security landscape.
As August draws to a close, the improvements in loss figures provide a glimmer of hope for enhanced security measures in the crypto sector. The data showcased by Immunefi will continue to be pivotal in understanding and mitigating security threats in the future.