Beosin, a blockchain security company, has published a detailed report on the security issues that occurred in the crypto industry in the third quarter of 2023. Approximately $889 million in losses were caused by various security issues in the third quarter of the year. The majority of the total loss occurred in decentralized finance protocols.
Security Concerns in the Crypto Industry Are Increasing
With the increasing popularity of blockchain technology and cryptocurrencies on a global scale in recent years, security issues in the crypto ecosystem have also increased significantly. Especially in recent months, numerous decentralized finance (DeFi) protocols have become the target of various cyber attacks.
Due to the increasing security issues in the crypto industry, significant losses worth millions of dollars have occurred during this period. Beosin, a blockchain security company, evaluated the security issues that occurred in the third quarter of the year in its report titled “Global Web3 Security Report”.
According to the report, cyber attacks, rug pull incidents, and various phishing scams resulted in crypto projects facing approximately $889 million in losses in the third quarter of 2023. The $200 million loss in Mixin Network, the $8 million loss in Curve Finance (formerly known as Huobi Global), and the HTX exchange, were the largest scale losses during this period.
Approximately $889 Million Loss in the Third Quarter
Security issues in the crypto industry significantly increased in the third quarter of the year. According to Beosin’s Global Web3 Security Report, crypto projects faced losses of approximately $330 million and $333 million in the first and second quarters of the year, respectively. However, in the third quarter, this number rose to approximately $889 million.
The largest scale losses within the approximately $889 million loss occurred in decentralized finance protocols. The largest scale loss was the $200 million loss in Mixin Network. The report also mentioned in which blockchain networks the total loss occurred due to cyber attacks, rug pull incidents, and various phishing scams. Ethereum ranked first, BNB Chain ranked second, and Arbitrum ranked third.
A significant portion of the approximately $889 million loss suffered by crypto projects could not be recovered. Beosin, the blockchain security company, stated in the report that only 10% of the funds seized by attackers were recovered.
