Web3 projects lost more than $2 billion due to hacks in the first half of 2022
A report by CertiK found that web3 projects lost more than $2 billion to hacks in the first half of 2022 – more than in all of 2021 combined.
“2022 will be web3’s costliest year to date. These numbers estimate that 2022 will see a 223% increase in funds lost to attacks compared to 2021,” CeriK wrote in his report.
CertiK’s sobering report highlights the troubles of an industry that presents itself as a return to the decentralized values of the web1 while restoring trust after companies and authorities of the web2 era played without the benefits of protecting the privacy and individual rights.
The biggest hack in the history of the web3
takes place on the Poly Network in August 2021. Over $600 million worth of tokens were stolen in this attack. The hacker returned almost all the money so that it would not be considered “lost”.
In March 2022, the Ronin Network bridge was hacked and approximately $552 million in Ethereum and USDC was stolen.
Ronin’s hackers didn’t return the funds, but in some karmic justice they tried to use their loot to “short-circuit” the network’s tokens to get more after news of the hack broke, but it didn’t seem like it was planned:
The Ronin hack earlier this year still resulted in a permanent loss to the legitimate owners of the stolen assets. The devastating hack contributes significantly to the record amount of money lost in project web3 exploits in 2022. “There is the reason for a little optimism given that the amount lost to the attack decreased by 42% compared to the previous quarter. However, this data is focused on the catastrophic attack against the Ronin network for $ 624 million in late March,” added CertiK.
CertiK has seen a sharp increase in the number of flash loans and phishing attacks targeting the web3.
The largest flash loan attack targeted Beanstalk Farms and cost more than $182 million. Fei Protocol’s second biggest hit with over $79 million. DEUS Finance 2 was a distant third, but still suffered a loss of more than $15 million.
In contrast, the number of carpet recalls and exit scams “is far below the shocking losses seen last year”.