Malicious Actors Stole $1.8 Billion in 2023

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  • Hackers and scammers in the web3 world have stolen close to $2 billion in 2023
  • 17% of the amount is linked to the notorious hacking group Lazarus
  • Mixin Network, Euler Finance, and Multichain suffered the highest losses

The web3 world lost $1.8 billion to hackers and scammers in 2023, with 17% of it going to the North Korean hacking group Lazarus. Among the top losers are Mixin Network, Euler Finance, and Multichain who lost over $523 million cumulatively according to blockchain firm Immunefi. According to the firm, most of the funds were lost through hacks rather than scams, an indication that web3 platforms and users need to improve their security measures.

$300 Million Stolen from Five Platforms

According to Immunefi, the Mixin network lost the most funds at $200 million. The security breach to the network was due to an attack on its database provider. Euler Finance came in second while Multichain protocol came in third place.

The movement of funds from Multichain was under unclear circumstances with trouble starting when the platform’s CEO went missing. Later the platform announced its shutting down after its CEO’s arrest rumors were confirmed.

Immunefi has associated the hacks on CoinEx, Stake, Atomic Wallet, Alphapo and CoinsPaid to Lazarus, noting that the hacking group has pocketed over $300 million from the five platforms. 

The blockchain security firm noted that only slightly over $100 million was siphoned through scams like rug pulls, with the rest coming from hacks and smart contract exploits. The firm added that decentralized platforms were worst hit by hacks losing $1.3 billion compared to their centralized counterparts that only lost slightly over $400 million.

$2 Billion Less than in 2022

The amount lost in 2023 is however lower than the $3.8 billion lost in 2022 according to Chainalysis

Other platforms that have also lost a considerable amount of user funds include crypto exchange Poloniex and KyberSwap.

Although the amount stolen through hacks and scams in 2023 is lower than in 2022, it shows that malicious actors can siphon funds from even the most presumably secure blockchain platforms.