NEW DELHI: According to a recent study, breaches and fraud cost the cryptocurrency industry up to USD 428 million in the third quarter (Q3), a decrease of 36 percent from the second quarter.
According to a bug bounty site Immunefi research of cryptocurrency losses, fraud accounts for about 7 percent of total losses in the third quarter of 2022 whereas hackers account for 93 percent of losses.
The research saw, "With billions locked across several smart contracts and the worldwide Web3 area valued at USD 3 trillion in 2021, this capital creates a unique and alluring opportunity for blackhat hackers." The researchers discovered a USD 399 million loss due to hacking across 30 distinct instances and a USD 29 million loss due to fraud across 9 distinct incidents.
The majority of that money was squandered by two particular projects, Wintermute and Nomad Bridge, a cross-chain communication standard that permits token and data transfers between chains, according to the research.
Compared to CeFi, DeFi (decentralised finance) is still the main target for exploits in Q3 of 2022. (centralised finance). DeFi accounted for 98.8 percent of the overall losses, while CeFi accounted for 1.2 percent of the losses. BNB Chain and Ethereum were the two chains that were targeted the most in Q3 2022.
With 16 occurrences, or 28.6 percent of losses across all targeted chains, BNB Chain experienced the most individual attacks, followed by Ethereum with 13 incidents, or 23.2 percent.
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