Analysis from Naoris Protocol, a global cyber security firm, reveals there was a rise in the number of reported cyber security hacks on Web3 and DeFi in Q1 2023 compared to the same period in 2022 and 2021 – with 19 reported hacks. This is up from 16 reported hacks in Q1 2022 and 10 reported hacks in Q1 2021. Between 1st January 2023 and 14th April 2023 there were 22 reported cyber security hacks, totaling over $265 million in losses. The biggest single hack in Q1 2023 stole $197 million from Euler Finance. The most common type of hack so far in 2023 is one that targets a weakness in protocol logic. There were 11 of these types of hacks reported in the first quarter of this year, totaling $230 million in losses, which is less than half the amount lost in the same period in 2022. However, the number of these reported hacks in Q1 2023 was almost double that of Q1 2022, which saw six protocol logic attacks, but which totaled $471.8 million in losses. There were also four attacks in Q1 2023 which targeted a weakness in the interaction between multiple protocols, classified as Ecosystem (there have been a further three reported attacks of this type since 1st April); two infrastructure attacks and two rug-pulls. When discounting the two huge cyber-attacks in Q1 2022 – Ronin at $624,000,000 and Wormhole at 326,000,000 – the overall amount stolen in Q1 2023 has increased by 11% on Q1 2022. The average amount stolen per cyber-attack in Q1 2023 was $13,287,684 compared to a slightly larger $16,203,571 in Q1 2022, showing in general hackers are increasing the number of attacks but stealing slightly less each time, compared to last year.
Full story : Reports of Web3 and DeFi hacks surge during Q1 2023.
While these are the largest cryptocurrency hacks that have happened in 1st quarter of 2023, OODA has been compiling a comprehensive Web3 incident database based on our research to categorize what compromises are taking place as well as document the root causes that plague Cryptos, DeFi, NFTs, and Web3 in general. Tracking root causes provides comprehensive insights into how innovators can create robust cyber risk management approaches and reduce the potential for consequential attacks. You can access the OODA comprehensive Crypto Incident tracker here.