$889,260,000 in Crypto Lost to Hacks, Scams and Rug Pulls in Q3 of 2023, According to Blockchain Security Firm
Illicit Crypto Activities Reached Record High in Q3 2023, Says Beosin EagleEye
According to a report by Beosin EagleEye, a leading web3 security company, there has been a significant increase in illicit crypto activities during the third quarter of 2023. The report states that the total losses from hacks, phishing scams, and rug pulls in the web3 sector reached a staggering $889.26 million during this period. Hacks or major attacks accounted for approximately 60% of these losses.
The report highlights that there were 43 major attacks during the third quarter, resulting in a total loss of around $540.16 million. Additionally, phishing scams contributed to losses of about $66.15 million, while rug pulls accounted for approximately $282.96 million in losses.
Notably, these third-quarter losses were 34% higher than the combined losses incurred during the first and second quarters of 2023. The report specifies that the losses in Q3 2023 exceeded the total losses for the first half of the year, which were around $330 million in Q1 and $333 million in Q2. The dramatic increase in losses during the third quarter is concerning for the security of the web3 ecosystem.
One of the most notable incidents during this period involved the Lazarus Group, a North Korean hacking organization, which stole more than $208 million across four attack incidents. This group posed the biggest threat to web3 security during Q3 2023. Additionally, the recent hack of the Mixin Network, a decentralized cross-chain trading network, accounted for 37% of the total losses for the quarter.
The report also highlights that Ethereum recorded the highest amount of losses from security incidents, totaling $227 million. This makes Ethereum the blockchain with the highest losses. Mixin Network ranked second with a single event causing $200 million in losses. Combined, Ethereum and Mixin Network accounted for 79% of the total losses.
The findings of this report demonstrate the growing challenges faced by the web3 sector in terms of security. The increase in illicit activities and the large losses incurred during the third quarter should serve as a wake-up call for companies operating in this space. It is crucial for web3 security companies, blockchain projects, and users to prioritize cybersecurity measures to protect against such threats.
The web3 ecosystem must focus on implementing robust security protocols, including advanced encryption methods, multi-factor authentication, and decentralized storage solutions. Additionally, continuous monitoring, proactive threat intelligence, and collaboration with cybersecurity experts can help identify and mitigate potential risks.
As the web3 sector continues to grow and evolve, it is essential for all stakeholders to prioritize security to ensure the long-term success and sustainability of this exciting technology.
