"All Crypto Face 93% Hacking, 7% Fraud In 3Q"

 

Hacking makes $428 million in Q3 2023

Cryptocurrency losses from cyberattacks hacking reached $428 million in Q3 2023, down 36% from Q2, according to a new report by blockchain security firm Immunefi. The report found that hacks accounted for 93% of all crypto losses in Q3, while fraud accounted for the remaining 7%.

Ronin bridge hack:

The largest hack in Q3 was the $190 million theft from the Nomad bridge, followed by the $160 million hack from the Ronin bridge. Both bridges were used to cross-chain assets between different blockchains. The hack was announced on March 29th on the official Ronin Network twitter account. The team released an announcement stating that Ronin Validators were compromised and giving some details on what happened.

DEX Rari and Curve hack:

Other notable hacks in Q3 included the $5.3 million theft from the decentralized exchange (DEX) Curve and the $4.5 million theft from the DEX Rari Capital.

• According to a tweet from Blockchain security firm PeckShield, the same vulnerability has been used to attack other forks of the Compund DeFi protocol.
• Rari Capital acknowledged the hack, saying borrowing has been paused globally and that no further funds were at risk.
• Fei Protocol, which merged with Rari in December, offered to let the attacker keep $10 million of the stolen funds as a “bounty” if the remaining funds were returned.

Decentralized finance (DeFi) protocol hack:

The report also found that decentralized finance (DeFi) protocols were the most common targets of hacks in Q3, accounting for 62% of all losses. This is likely due to the fact that DeFi protocols are often more complex and less secure than traditional cryptocurrency exchanges. According to Liqwid Labs, an admin’s user token was compromised through a malicious link, effectively bypassing two-factor authentication (2FA) and leading to an account takeover. This incident resulted in the addition of several malicious accounts and spam messages on the server. In the aftermath of the breach, Liqwid Labs has announced plans to enhance its security measures. The protocol plans to switch to a “cold admin” account dedicated exclusively for server administration and remove admin privileges from all existing admins’ day-to-day user accounts. This change aims to mitigate the risk of similar incidents occurring in the future.

The report also found that the number of crypto losses from cyberattacks has been declining in recent quarters. This is likely due to a number of factors, including the increasing use of security measures by cryptocurrency exchanges and protocols, and the growing awareness of cybersecurity risks among cryptocurrency users.

However, the report warns that cyberattacks remain a significant threat to the cryptocurrency industry. The report recommends that cryptocurrency exchanges and protocols take the following steps to protect themselves from cyberattacks:

• Use strong security measures, such as multi-signature wallets and two-factor authentication.
• Conduct regular security audits.
• Educate their users about cybersecurity risks.

The report also recommends that cryptocurrency users take the following steps to protect themselves from cyberattacks:

• Only use reputable cryptocurrency exchanges and protocols.
• Store their cryptocurrency in secure wallets.
• Be cautious about clicking on links or opening attachments from unknown senders.
• Use strong passwords and two-factor authentication for their cryptocurrency accounts.

Cyberattacks are a serious threat to the cryptocurrency industry. By taking the steps outlined in this report, cryptocurrency exchanges, protocols, and users can help to protect themselves from these attacks.

Cryptocurrency losses from cyberattacks remain a significant problem, but they are starting to decline. Cryptocurrency exchanges, protocols, and users can help to protect themselves from cyberattacks by taking the following steps:

• Use strong security measures.
• Conduct regular security audits.
• Educate their users about cybersecurity risks.
• Only use reputable cryptocurrency exchanges and protocols.
• Store their cryptocurrency in secure wallets.
• Be cautious about clicking on links or opening attachments from unknown senders.
• Use strong passwords and two-factor authentication for their cryptocurrency accounts.