Crypto investors lost $282.96 million in Q2

Crypto investors lost $282.96 million in Q2

Crypto investors lost $282.96 million to rug pulls across 81 incidents, while phishing schemes generated $66.15 million in ill-gotten gains during the same quarter.

The biggest impact came from hacks where 43 crypto projects experienced security breaches that resulted in the loss of $540.16 million. CryptoSlate reported notable hacks of various crypto projects during the period, such as the $200 million hack of Mixin Network, the $73 million hack of Curve Finance, and the $8 million HTX lost to a hot wallet compromise.

This marks a significant upsurge, compared to the cumulative losses of the first half of the year, which totaled $330 million in the first quarter and a slight increase to $333 million by the year's second quarter.

It was published in collaboration with other members of the blockchain alliance, including Footprint Analytics and SUSS NiFT.

Beosin revealed that decentralized finance projects suffered the most hackings during the period, with around 67% of the breaches targeting platforms in the sector. While blockchains, payment platforms, exchanges, casinos, and infrastructure have been impacted by hacking incidents during the period, it's crucial to note that others sectors, such as blockchains, payment platforms, exchanges, casinos, and infrastructure, also experienced hacking incidents during the period.

Despite malicious players' penchant for targeting DeFi projects, public blockchains recorded the largest monetary loss, resulting from the $200 million breach of the Mixin Network. This single breach was responsible for 37% of the total losses for the quarter, and is the most significant crypto loss of this year.

Beosin wrote that the Ethereum blockchain suffered the most casualties and incidents during the period. It said: If you don't like it, it's a good thing.

As such, nearly half of the attacks had not undergone any security audits. Beosin said 14 of the 22 projects attacked because of contract vulnerabilities had never been audited.

This highlights that many of these exploits had been prevented had projects taken the necessary precautions to conduct audits and address vulnerabilities.

One of the biggest challenges of retrieving stolen crypto assets is that only 10% of the stolen funds were successfully recovered, leaving a substantial sum of $800 million unaccounted for, underscoring the challenges of retrieving stolen crypto assets.