- $1.8 billion was stolen from Web3 companies in 2023 via hacks and fraud, according to a new report from blockchain security firm Immunefi.
- The Lazarus Group was responsible for 17% of the losses, or around $309 million. The biggest hacks targeted Mixin Network, Euler Finance, and Multichain bridge protocol.
- While the $1.8 billion lost this year is over 50% less than 2022, it still highlights vulnerabilities in Web3 security that need improvement.
In 2023, a shocking $1.8 billion was stolen from Web3 companies through hacks and fraud. This concerning statistic comes from a new report by blockchain security firm Immunefi.
The Major Culprits
The North Korea-linked Lazarus Group was responsible for 17% of the losses, approximately $309 million. The cybercriminal organization pulled off hacks of Atomic Wallet, CoinEx, AlphaPo, Stake, CoinsPaid, and others this past year.
The Biggest Web3 Hacks of 2023
The largest hack in terms of stolen funds occurred at peer-to-peer trading platform Mixin Network. Investors lost over $200 million in this breach.
The second biggest hack hit lending platform Euler Finance to the tune of $197 million.
Cross-chain bridge protocol Multichain suffered the third largest hack of 2023, losing $126 million.
Hacks vs. Fraud
Nearly all of the lost funds came from hacks rather than fraud schemes. Only $103 million was lost through identifiable fraud tactics like rug pulls. In contrast, over $1.6 billion stemmed from hacks and exploits.
The majority of the money was taken from protocols claiming to be decentralized. Centralized crypto companies, known as CeFi, only saw $409 million stolen in 2023.
A Decline From Previous Years
The $1.8 billion lost this year represents a drop of over 50% from 2022. Last year, Chainalysis reported more than $3.8 billion in stolen crypto funds.
While the decrease is a positive sign, the hacking epidemic of 2023 still highlights vulnerabilities in the burgeoning Web3 sector. There is ample room for improvement when it comes to security and preventing future breaches.
