- Recent Web3 reports highlight substantial losses incurred between December 3 and December 9, amounting to almost $1.91 million.
- Several prominent tokens, including Abattoir of Zir (DIABLO) and Strong Finance (STRONG), experienced significant losses, attributed to rug pulls and debacles within the Web3 ecosystem.
- SlowMist, in its findings, uncovered the Stargate snapshot scam occurring on December 4, detailed in a separate report, contributing to the broader losses in the Web3 space.
In a quarterly web3 report published by CertiK, a blockchain security company, findings reveal a concerning trend: cryptocurrency exploits and hacks led to a loss of over $300 million worth of digital assets during the second quarter of 2023.
Analyzing CertiK’s report, a total of 212 security incidents unfolded in the quarter, resulting in a staggering $313,566,528 drained from Web3 protocols.
Despite the quarter's lower losses compared to the same period in 2022, our scrutiny reveals a surge in losses attributable to exit scams, totaling around $70 million during this period.
Notably, Q2 experienced a decline in losses from Oracle manipulation attacks and flash loans. The previous quarter witnessed 52 oracle manipulation attacks, causing losses of about $222 million, primarily due to the Euler Finance hack constituting over 85% of these losses.
Additionally, Q2 observed a 89% drop in losses stemming from 54 flash and oracle manipulation attacks, amounting to around $23 million. Oracle manipulation attacks exploit vulnerabilities in price oracles used by decentralized applications (DApps) and smart contracts, enabling fraudulent activities like price manipulation and transaction misexecution.
Meanwhile, flash loan attacks, where individuals leverage uncollateralized lending to manipulate markets, declined in their impact during Q2.
CertiK's report highlighted BNB Chain as the most targeted blockchain with 119 incidents, resulting in losses of $70,711,385, followed by Ethereum with over 55 incidents and hackers gaining more than $65,999,953.
While Web3's rapid expansion presents incredible opportunities, it also amplifies risks. Stakeholders need heightened vigilance against fraudulent activities that exploit vulnerabilities in the system, underscoring the importance of fortifying defenses to thwart potential cyber threats.
Disclaimer: Voice of Crypto aims to provide accurate information but cannot be held liable for missing facts or inaccuracies. Cryptocurrencies are highly volatile; therefore, conducting thorough research is crucial before making financial decisions.