- Crypto hacks and frauds reached a 2022 high of $343M in losses in November, with centralized finance platforms bearing the brunt at $184M.
- DeFi also saw substantial losses of $158M in November, with Ethereum and BNB Chain accounting for 83% of dApp losses.
- Despite a rocky start, crypto hacks and frauds show no signs of slowing, with over $17B in losses in 2022 so far. November was the highest month.
The cryptocurrency industry faced significant losses in November 2022, with the bug bounty platform Immunefi reporting over $343 million lost to platform hacks and fraud. This marked the highest monthly loss for the nascent industry this year.
The Extent of the Losses
Immunefi’s report revealed that the $343 million loss represented a 154x increase compared to the $2.21 million lost in October 2022. Crypto hacks accounted for the largest share at $335.57 million across 18 incidents, while crypto frauds totaled $7.46 million across 23 incidents.
Centralized Platforms Bear the Brunt
According to the report, centralized finance (CeFi) platforms bore the brunt of the losses in November, losing $184.44 million across four separate incidents. This represented a massive 53.8% of total losses for the month. Immunefi attributed the spike to hacks of Justin Sun’s Poloniex, HTX (formerly Huobi Global), and Taiwanese VC firm Kronos Research. The three platforms lost over $1329 million combined.
Decentralized Finance Also Impacted
The decentralized finance (DeFi) ecosystem also saw substantial losses totaling $158.63 million across 37 incidents, accounting for 46.2% of losses. Given Ethereum and BNB Chain’s market share in DeFi, the two networks accounted for 34 incidents and 83% of dApp losses. Layer 2s like Arbitrum and Optimism had fewer incidents.
Losses Exceed $17 Billion in 2022
Despite a rocky start to 2022, crypto hacks and frauds show no signs of abating. Immunefi reports the industry has seen losses surpassing $17 billion year-to-date across 296 incidents. November ranked as the highest month, followed by September ($340 million) and July ($320 million).
Conclusion
The significant crypto losses in November highlight the industry’s continued vulnerability to hacks and fraud. As the market develops, participants must prioritize security and risk management. The coming months will test platforms’ defenses as malicious groups continue targeting weaknesses.
