Q3 2023 topped most ‘damaging’ quarter for crypto amid $700M losses: Report

Home » Q3 2023 topped most ‘damaging’ quarter for crypto amid $700M losses: Report
Q3 2023 topped most ‘damaging’ quarter for crypto amid $700M losses: Report

The third quarter of 2023 has been the “most financially damaging” quarter of the 12 months, taking nearly $700 million in digital belongings throughout varied safety incidents, in accordance with the quarterly report of blockchain safety agency CertiK. 

Inside the report, CertiK highlighted that there was a complete of 184 safety incidents that occurred in July, August and September 2023. The report highlighted that over $699 million in crypto belongings have been misplaced within the quarter, surpassing the first-quarter losses of $320 million and the second-quarter losses of $313 million.

Inside the varieties of exploits that led to the losses, personal key compromises have been listed as essentially the most damaging, taking up $204 million throughout 14 incidents. In accordance with the report, the Multichain incident, the place personal keys have been beneath the unique management of the venture’s CEO, led to a lack of $125 million. The incident highlighted that centralized management of personal keys for companies might result in a vulnerability, which, in Multichain’s case, led to a stoppage of its operations.

Incident counts and quantity misplaced in Web3 safety incidents in Q3 2023. Supply: CertiK

Aside from the personal key exploits, exit scams and oracle manipulation have additionally been prevalent within the quarter. The report highlighted that there have been a complete of 93 exit rip-off incidents within the quarter, taking greater than $55 million in digital belongings. In the meantime, oracle manipulation incidents have been 38, taking up $16 million in crypto. 

Associated: Exploits, hacks and scams stole nearly $1B in 2023: Report

In relation to crypto hacks, the exploit of the cross-chain protocol Mixin Community contributed essentially the most to creating September the greatest month for crypto exploits in 2023. On Sept. 25, Mixin Community suspended all withdrawals and deposits after the incident. The corporate later confirmed that $200 million value of belongings from its mainnet have been drained.

CertiK’s quarterly report additionally highlighted that North Korea’s state-affiliated hacking group Lazarus was nonetheless a “dominant risk actor” within the quarter. The report famous that the group was liable for a minimum of $291 million in confirmed losses in 2023 and continued its actions within the third quarter.

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