Record Losses in Web3 May Be Coming as Crypto Prices Rise – Immunefi
Major bug bounty and security services platform Immunefi published a report detailing the loss of funds due to hacks and fraud in the Web3 ecosystem this year – and what might await in the next.
The team looked into the volume of crypto funds the community lost in 2023, finding it to be lower, but still substantial. And it may rise.
In its ‘Crypto Losses in 2023’ report, Immunefi warned that,
“With the persistent rise in cryptocurrency prices, next year may see the most substantial losses in Web3 ever.”
The ongoing challenges related to projects’ infrastructure will remain a major source of vulnerabilities next year as well. The “general approach within the industry is not changing fast enough.”
According to Mitchell Amador, Founder and CEO at Immunefi, despite a reduction in overall losses in 2023 compared to 2022, Web3 still saw “a substantial surge in hacking attempts and fraud incidents” this year.
The frequency of such cases, he said, nearly doubled.
Amador argued that,
“Unfortunately, more projects are becoming susceptible to attacks. While decentralized finance remained the primary target of successful exploits, this year marked a significant shift as CeFi began to draw more attention from hacker groups, including the notorious Lazarus.”
And speaking of the Lazarus Group…
The North Korea-affiliated hacker group Lazarus was responsible for $308.6 million stolen in 2023, Immunefi found. This is a whopping 17% of the total year losses, nearly a fifth.
The group was allegedly behind the high-profile attacks on Atomic Wallet, CoinEx, Alphapo, Stake, CoinsPaid, and the massive Ronin Network attack, resulting in a $625 million loss.
The Immunefi team recently published a report focusing specifically on the Lazarus Group.
It found
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