August Sees $15.8M Crypto Losses in Hacks and Exploits: Report

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Key Takeaways

  •  A combined $23.4 million in crypto was lost to a combination of hacks and fraud in August
  • Among the 21 security incidents reported, 5 took place on the ETH blockchain

In a turbulent month for the crypto world, the growing threat of hacks and exploits has continued to plague the industry, with August witnessing a loss of $15.8 million in cryptocurrencies. This figure, although significantly lower than July’s staggering $320.5 million in losses, underscores the persistent vulnerabilities within the decentralized finance (DeFi) sector.

According to a report by blockchain security firm Immunfi, a combined total of $23.4 million was compromised due to a combination of hacks and fraud. Notably, the focus of these attacks was primarily on DeFi protocols, highlighting the increasing allure of these platforms for cybercriminals seeking to exploit system weaknesses.

Ethereum and BNB Chain bore the brunt of these attacks, with five security incidents occurring on the Ethereum blockchain and four on BNB Chain. Even Coinbase’s highly anticipated layer-2 solution, Base, faced challenges, encountering four security breaches shortly after its launch on August 9.

One of the most significant breaches was the Exact protocol hack on August 18, which saw malicious actors siphoning off 4,323.6 Ether (approximately $7.2 million) from user deposits via a malicious deposit contract.

Additionally, Magnate Finance, operating on Coinbase’s Base protocol, raised alarm bells when it pulled the rug from under its users, absconding with $6.5 million just hours after suspicions of an exit scam were raised by on-chain sleuths. It’s worth noting that these incidents exclusively targeted DeFi platforms, leaving centralized financial entities unscathed.

This shift in focus towards DeFi underlines the potential gains that hackers perceive within this emerging landscape. July had witnessed a staggering 48 major hacks, resulting in losses of around $165 million, as reported by blockchain security firm PeckShield. Although the August numbers appear relatively less severe, they signal an ongoing struggle for the crypto industry to bolster its defenses against sophisticated cyber threats.

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Saniya Raahath
Saniya Raahath

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