Web 3 projects shaken by cyberattacks in 2022

A new report from Beosin on blockchain security, notes that DeFi and Web3 projects were the target of several attacks in 2022, with a total of 167 incidents. Decentralized finance was the most vulnerable, with 113 threats. This represents about 67.6 percent of all major security incidents recorded in the crypto ecosystem during the year. Cyberattacks across all projects combined caused an estimated loss of more than $3.6 billion.

More than $3.6 billion stolen by hackers in 2022

The decentralized finance (DeFi) and Web3 sectors faced numerous cyberattacks in 2022, according to a recent report released by Beosin. Nearly 167 attacks affected these sectors last year. These incidents caused an estimated loss of more than $3.6 billion.

However, DeFi projects were the most vulnerable. They suffered the highest number of attacks, with 113 incidents, accounting for 67.6 percent of all recorded attacks.

In terms of loss of funds, DeFi projects were in second place, with $950 million lost.

Bridges suffered a heavy loss of funds, with nearly $1.89 billion lost.

Here are the top attacks recorded during 2022:

  1. Axie Infinity Ronin: $624 million
  2. BSC Token Hub (BNB Chain): $560 million
  3. FTX: Shortly after the FTX bankruptcy, $440 million lost to a Rug Pull attack
  4. Wormhole: $326 million
  5. Nomad: $1.5 billion
  6. Beanstalk: $182 million
  7. Wintermute: $160 million
  8. Mango markets: $116 million
  9. Elrond: $113 million
  10. Harmony: $100 million

Blockchain security companies urge caution

Experts say 2023 is likely to see even more cyberattacks in the DeFi space because of:

  • The amount of projects in development;
  • The lack of security testing;
  • The value these projects attract.

Although it’s only the beginning of the year, DeFi has already been the victim of an attack. A few days after the New Year, a GMX token whale lost control of its wallet due to a hack. According to CertiK, hackers managed to steal $3.5 million in GMX.

CertiK urged the DeFi and Web3 projects to strengthen their security to protect users and their funds from attacks. Users should also be careful and protect their private keys by keeping them on a cold wallet like a Ledger key.