2023 DeFi Hack Losses Surge to $20.7M in February

Bad actors have conducted several attacks on the DeFi market in recent weeks. Over $20 million has been stolen so far in 2023 as these entities continue to target vulnerable platforms.

DeFi continues to be a major target for bad actors in the crypto market, with the total value lost exceeding $20 million. Data from DeFiLlama shows the extent of this damage, with most of the attacks taking place via compromised private keys.

DeFi Targets

Recent attacks include those against the dForce network, Platypus Finance, and Orion, which are all some of the larger-value hacks that have taken place. Most attacks in 2023 have to do with issues in protocol logic, though there has been at least one rug pull.

Flash loan attacks still dominate the list of hacks in recent weeks, demonstrating that this continues as a major pain point for the DeFi market. The attacks have comparatively low individual values compared to last year, but they do not flatter due to their sheer number and cumulative value.

DeFi attacks likely won’t ease and may even increase. This is because bad actors are taking to other methods and targeting more popular sectors, like NFTs.

NFT Now a Major Target for Hackers

NFT hacks have become increasingly common. Bad actors seek to exploit users who have flocked to the space as a result of its sudden popularity. Hackers and scammers have stolen millions in NFTs this year alone, with one individual stealing over a few million on his own. Popular collections like the Bored Ape Yacht Club NFTs are often targeted, given their exposure and popularity.

In 2022, hackers made away with over $12 billion in NFTs, drawing much media attention. Hackers often focus on NFT marketplaces or engineer phishing attacks, and it’s unfortunate that it continues to plague the market.

2022: Worst Year on Record for Crypto Hacks

2022 was a tough year for the crypto market. Not just in terms of the crypto winter but also with respect to the number of security incidents. There were several major attacks last year, with Chainalysis stating that over $4 billion was stolen. This was the highest yearly value yet and is an indication of more action on this matter.

Bridge attacks, which became popular in 2022, remain something to keep an eye on. Last year, the North Korea-associated Lazarus Group was responsible for about $1.7 billion in crypto thefts. One major attack that it carried out was the exploit of Axie Infinity’s Ronin Bridge, which saw $650 million stolen.