According to a recent report by Immunefi, a web3 bug bounty platform, various web3 platforms have encountered losses surpassing $1.2 billion in the ongoing year as a result of hacking incidents and rug pulls.
The comprehensive report outlined a total of 211 separate instances that contributed to this substantial financial toll. Notably, the month of August emerged as a particularly challenging period, accounting for losses totaling $23.4 million.
The surge in losses experienced throughout August can be primarily attributed to projects hosted on the recently launched Ethereum Layer 2 Base network. This network, backed by Coinbase, encountered vulnerabilities within four distinct projects subsequent to its unveiling on August 9th.
The findings further highlighted that Ethereum bore the brunt of the attacks, facing a notable count of five distinct incidents that affected protocols constructed on the Ethereum network.
BNB Chain and Base Network Experience Substantial Losses Amid Hacking Incidents
Both BNB Chain and Base Network encountered a total of four separate incidents each, exposing vulnerabilities within projects such as LeetSwap, SwirlLend, Magnate Finance, and RocketSwap.
Collectively, these three chains combined to contribute a significant 62% of the total losses incurred throughout the month of August.
The analysis goes on to delve into the specific types of attacks that have led to these financial setbacks. Hacks have emerged as the predominant cause, overshadowing instances of fraud.
In the month of August alone, hacks were responsible for a staggering $15.8 million in losses, accounting for a substantial 67.7% of the total monthly sum.
Previously reported, Magnate Finance executed a rug pull that resulted in the loss of over $6.5 million in funds. Additionally, Balancer Protocol fell victim to an exploitation this month, resulting in losses of nearly $900,000, closely following the revelation of a critical vulnerability that affected several V2 pools.
In comparison, instances of fraud contributed to $7.6 million, comprising the remaining 32.3% of the total losses.
The study underscores that decentralized finance (DeFi) platforms were the primary targets for exploitation throughout August. In contrast, centralized platforms managed to evade major incidents during the same period.
Immunefi’s efforts extended beyond analysis, as the platform distributed over $80 million in bounties. This contribution played a significant role in preventing potential user fund losses exceeding $25 billion across various protocols, including Chainlink, The Graph, Synthetix, and MakerDAO.
