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Hackers Cost DeFi $678 Million in Q2 2022, New Report Shows
The market for cryptocurrencies has significantly weakened, especially after Bitcoin experienced its worst quarter in 11 years. The Decentralize Finance (DeFi) ecosystem lost $678 million in the second quarter of 2022, according to statistics made public by Immunefi, a top platform for bug bounties and security services.
Immunefi Reports A Loss That Is 1.5x Q2 2021
Decentralized finance, or DeFi, is a new financial system that has lost about $680 million to malicious actors since the previous quarter.
Fraudulent founders and malicious hackers targeted multiple crypto protocols in the second quarter of 2022 for a total of $670,698,280, according to the blockchain security platform Immunefi.
In contrast to the previous quarter, losses were mostly brought on by attacks on DeFi protocols rather than cross-chain bridges.
The majority of the money lost in the second quarter was due to four projects: Beanstalk ($182 million), Harmony’s Horizon Bridge ($100 million), Mirror Protocol ($90 million), and Fei Protocol ($80 million).
The Immunefi research states that it examined all reported blackhat hacker attacks against various crypto protocols as well as alleged cases involving fictitious protocols and purported inventors who pulled the rug in Q2 2022. These data demonstrate an almost 1.5x increase as compared to Q2 2021, when hackers and scammers stole $440,021,559. Between January and March, more than $1.2 billion was stolen from the bitcoin ecosystem.
The two most notable instances are the $326 million assault on the Solana’s Wormhole bridge and the roughly $550 million exploitation of the Ronin Network of Axie Infinity.
Since the beginning of the year, the number of hacks has risen while the total amount of money taken has doubled. In Q1 2022, 25 assaults were recorded, compared to 50 the quarter before. Last month, Aurora paid a whitehat hacker $6 million for disclosing a vulnerability that might have put $100 million in assets at risk. The award was the second-largest ever paid out for a cryptographic flaw, according to ImmuneFi.
$156 billion was lost by DeFi TVL in one quarter
According to DappRadar’s Blockchain Industry Report for May 2022, since Terra’s collapse, the value of Bitcoin and Ethereum has decreased by 25% and 40%, respectively.
The TVL was worth $77.94 billion at the time of publication. MakerDAO, the firm with the highest TVL, has $7.66 billion to its name. It has dropped by more than 19% during the last 30 days. The following two, AAVE and WBTC, each contributed $6.68 billion and $5.52 billion. They are both down more than 30% as compared to the preceding 30 days. The trio makes up 25.5 percent of the TVL.
The Ethereum blockchain lost 63.25 percent of its TVL in the second quarter of 2022. At the beginning of the quarter, it was worth $125.49 billion, and at the end, it was only worth $46.11 billion.
