Ledger was recently exploited for an estimated $610,000 — a reminder that security and privacy remain important priorities for the crypto ecosystem. According to DeFiLlama, hackers have cost crypto startups and projects more than $1.3 billion in losses this year. Since June 2016, on-chain losses have amounted to an estimated $7.54 billion, with $5.69 billion hacked in DeFi protocols. Brian Pak, co-founder of Chainlight, told Blockworks that these exploits should be a fundamental reminder that security is still overlooked in much of the DeFi Ecosystem. “As we enter into another bull market and liquidity starts to pour into the DeFi ecosystem, we can expect to see hacks like this happen more often,” Pak said. “It is of paramount importance that protocols take preemptive measures and are properly audited. Furthermore, builders must place more focus on security if the DeFi ecosystem is to flourish.” With 2024 just around the corner, let’s look at the five largest exploits that occurred this year. Hong Kong-based decentralized peer-to-peer network Mixin Network was exploited for an estimated $200 million in September this year, making it one of the biggest hacks of the year. Mixin has since released a new system with enhanced security features. It has also offered the hacker a bounty of $20 million in return for the stolen assets. “Most of our platform assets were users, and we hope you can refund them,” the Mixin team wrote. The company added in a post on X that the hacker could reach the team anonymously or through appropriate channels in order to return the compromised assets.
Full report : The 5 biggest DeFi hacks of 2023.
While these are the largest DeFi hacks that have happened in 2023, OODA has been compiling a comprehensive Web3 incident database based on our research to categorize what compromises are taking place as well as document the root causes that plague Cryptos, DeFi, NFTs, and Web3 in general. Tracking root causes provides comprehensive insights into how innovators can create robust cyber risk management approaches and reduce the potential for consequential attacks. You can access the OODA comprehensive Crypto Incident tracker here.
