Crypto Losses in Q1 2023 are Capped at $452 Million
- Crypto hacks in Q1 2023 were impressively lower than in Q1 2022. But the recovery rate was poor.
- About $520 million was returned out of the $1.3 billion stolen in Q1 2022, which was about 40%. However, only 28% of the missing funds were recovered in Q1 2023.
- Ethereum suffered the most from attacks in Q1 2023, but Binance recorded the highest reports.
- Attacks on DeFi platforms represented the majority of the losses recorded.
Crypto scams and hacks were a huge occurrence in the market all through 2022, and with the first quarter of the new year coming to an end, antivirus and app provider De.Fi has released a report offering insight into losses generated from crypto thefts caused by scammers and hackers in the first quarter (Q1) of 2023.
The report had both positive and negative indications for crypto users. On the plus side, losses were down from the $1.3 billion recorded in Q1 2022. However, the recovery rate was low. The total number of losses recorded in 2023 Q1 was valued at $452 million. Interestingly, nearly half of this figure took place in the first three weeks of March.
The Euler Finance (of $196 million) and Bonq DAO (of $120 million) attacks were the biggest losses of the quarter, meaning Ethereum suffered the highest loss in Q1. The CoinDeal scheme ranked third ($45 million), while the Monkey Drainer came in fourth at $16.5 million.
Six flash loan attacks out of the 49 cited in the report resulted in losses exceeding $200 million, with Euler Finance accounting for the majority of the total. The report also found that smart contract exploits (17) were the most prevalent type of attack. Only five instances involving decentralized finance (DeFi) were reported, but at $336 million, they represented the majority of losses.
Furthermore, $130 million was retrieved from the exploits in Q1. Interestingly, about $129 million of the total sum recovered was returned by the Euler Finance hackers. This figure shows that only 28% was recovered in Q1 as against the 40% recovered during this same period in 2022.
These losses mark a significant low in the fight against crypto scammers and their continued assault against the industry.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
