News
Analysis reveals rise in reported Web3 and DEFI hacks during Q1 2023
April 2023 by Naoris Protocol
New analysis from Naoris Protocol, a global cyber security firm, reveals there was a rise in the number of reported cyber security hacks on Web3 and DeFi in Q1 2023 compared to the same period in 2022 and 2021 – with 19 reported hacks. This is up from 16 reported hacks in Q1 2022 and 10 reported hacks in Q1 2021. Please see the attached press release on this. Other key findings from the analysis include:
• Between 1st January 2023 and 14th April 2023 there were 22 reported cyber security hacks, totaling over $265 million in losses. The biggest single hack in Q1 2023 stole $197 million from Euler Finance.
• The most common type of hack so far in 2023 is one that targets a weakness in protocol logic. There were 11 of these types of hacks reported in the first quarter of this year, totaling $230 million in losses, which is less than half the amount lost in the same period in 2022. However, the number of these reported hacks in Q1 2023 was almost double that of Q1 2022, which saw six protocol logic attacks, but which totaled $471.8 million in losses.
• There were also four attacks in Q1 2023 which targeted a weakness in the interaction between multiple protocols, classified as Ecosystem (there have been a further three reported attacks of this type since 1st April); two infrastructure attacks and two rug-pulls.
• Targeting a weakness in protocol logic was also the most common type of attack in Q1 2022, with six in total valuing $471.8 million. During 2021, the attack type was one that targeted a weakness in the interaction between multiple protocols – classified as Ecosystem – with four recorded in the first quarter, totaling $52.8 million lost.
• When discounting the two huge cyber-attacks in Q1 2022 – Ronin at $624,000,000 and Wormhole at 326,000,000 - the overall amount stolen in Q1 2023 has increased by 11% on Q1 2022. The average amount stolen per cyber-attack in Q1 2023 was $13,287,684 compared to a slightly larger $16,203,571 in Q1 2022, showing in general hackers are increasing the number of attacks but stealing slightly less each time, compared to last year.
• Ethereum blockchain reported the highest amount lost in Q1 2023 – $204.2 million which is 81% of the overall amount lost in the first quarter.
• The Ethereum blockchain reported the highest number of hacks in 2022 (23 in total), six of which took place in the first quarter, amounting to $685 million – more than half (58%) of the total amount stolen in Q1.
