Web3 ecosystem saw losses of USD 428 million in Q3 2022. The losses recorded due to hacks in Web3 space have decreased by more than half since Q3 2021. The loss of USD 398 million was attributed to hacks across 30 specific incidents and a loss of USD 29 million was due to fraud across nine specific incidents in Q3 2022. These losses represent a 62.9 percent decrease compared to Q3 2021, when hackers and fraudsters stole over USD 1 billion. During the quarter, DeFi has suffered USD 423 million in total losses across 36 incidents while CeFi suffered USD 5 million in total losses across 3 incidents. The two most targeted chains in Q3 2022 were BNB Chain and Ethereum. BNB Chain suffered the most individual attacks with 16 incidents, representing 28.6 percent of the total losses across targeted chains, and Ethereum witnessed 13 incidents, representing 23.2 percent respectively. Surprisingly, most of the Q3 2022 losses were due to two specific projects, Nomad Bridge and Wintermute, totaling USD 350 million. Together, these two projects represent 79.85 percent of Q3 losses alone. The Immunefi report found that there has been a loss of USD 29.8 million due to fraud in Q3 2022, across nine specific incidents.
While these are the largest cryptocurrency hacks that happened in the third quarter of 2022, 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.