Crypto Hacks, Scams and Rug Pulls Lead to $656 Million Losses in First Half of 2023: Report

Total Value of Cryptocurrencies Lost to Scams, Hacks, and Rug Pulls in H1 2023

As reported by Web3 security firm Beosin on June 30th, the total value of cryptocurrencies lost to scams, hacks, and rug pulls during the first half of 2023 amounted to $656 million. This included $471.43 million in 108 protocol attacks, $108 million in various phishing scams, and $75.87 million in 110 rug pulls. Compared to H1 2022 and H2 2022, where $1.91 billion and $1.69 billion were lost, respectively, the amount lost in hacks was significantly lower. Additionally, Beosin analysts commented:

In a dashboard compiled by Beosin and Footprint Analytics, the only project to have been hacked for more than $100 million was Euler Finance’s $195 million flash loan hack on March 13. The firm was able to open redemptions on April 12, after the majority of the stolen assets were returned by the hackers.

In the first half of 2023, the vast majority of crypto lost was comprised of coins and tokens minted on the Ethereum blockchain, accounting for 75.6%. Binance Smart Chain tokens, the second largest stolen asset class, made up only 2.6%.

Moreover, the majority of stolen cryptocurrency was lost due to vulnerabilities in smart contracts (56%), while 21.4% had no discernible cause for the loss. Despite this, the figures represent a notable decrease compared to the second half of 2021, when a record $2.1 billion in crypto was lost due to hacks, phishing scams and rug pulls.

Negotiating with Hackers: Is it Advisable for Crypto Projects?

Magazine: Is it ever advisable for crypto projects to negotiate with hackers? Most likely.