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Web3 space has lost $1.48 billion to cyberattacks since January

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The web3 space lost $1.48 billion in various scams and attacks between January and May 2022, with four incidents accounting for 81% of that number. study from a cybersecurity company Slice disclosed.

Cyber ​​attacks in 2022 by size (via Hacken)
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A total of 87 hacks, exploits and scams were recorded between January and May. The four superhacks accounted for $1.20 billion, accounting for 81.3% of the total stolen, according to the study.

Super hacks

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The financial incidents of Ronin Network, Solana Wormhole, Beanstalk and Qubit are four super hacks that account for $1.20 billion.

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The Qubit Finance hack happened in January 2022. An attacker exploited a vulnerability in the protocol to mean xETH without making a deposit of WETH. As a result, the protocol lost 206,809 BNB, which equates to $80 million.

The following month, Solana’s bridge in the wormhole was breached. The attacker was able to transfer 80,000 ETH through the wormhole in one transaction. At the time, that amount was over $326 million.

In March, Axie Infinity’s hacking of the Ronin Network made headlines. The attacker managed to take control of four Ronin Network validators and steal 173,000 ETH from the protocol. At that time, the amount was about $615 million, making the Ronin hack the most expensive of all four super hacks in 2022.

Finally, DeFi protocol Beanstalk flash loans were attacked in April. The attacker made $80 million and the protocol lost over $180 million.

Growth of attacks

The report starts from 2012 and looks at attacks up to May 2022. The numbers show that the number of casualties from cyberattacks has grown exponentially, especially over the past two years.

Between 2012 and 2019, web3 lost about $700 million, with a 0.2% recovery rate of $2 million.

From January 2020 to the end of the year, total losses from cyberattacks rose to $300 million. Although this is an incredible jump in a year, 18% of the funds were returned, which amounted to about $55 million.

Throughout 2021, the losses increased even more. From January to December 2021, $2.3 billion was stolen as a result of cyberattacks. Despite the size of the amount stolen, the recovery rate increased to 28%, which equals $652 million.

Recovery lag in 2022

Another result noted in the report was an alarming drop in recovery rates.

Between 2012 and 2019, recovery indicators were almost non-existent. This was partly due to low awareness of cyberattacks and lack of experience in this area.

The recovery rate has increased to around 20% in 2020 as cybersecurity experts have expanded their knowledge of blockchain technology. However, in 2022 they could not keep up with the same indicators.

The report indicated that only 4.5% of the $1.478 billion total loss was recovered, equating to $68 million. The report says:

“Web 3.0 projects lost more money to hacks, scams and exploits in 2022 than in the entire period from 2012 to 2019. Perhaps most alarming is the recovery rate of just 4.5%. This recovery rate is far from 28% in 2021 and indicates an increase in the complexity of hacks and fraud.”

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