Over $204 DeFi Millions Lost in Q2 Amid Escalating Hacks and Scams

The second quarter of 2023 witnessed a significant loss of over $204 million in decentralized finance (DeFi) due to hacking incidents and scams.

The report reveals a surge in DeFi breaches, with 117 incidents compared to 17 in the same quarter of the previous year, resulting in total losses of over $665 million in the first half of 2023.

Access control issues and exploitative tactics were the primary causes of financial losses, amounting to millions of dollars, although losses in Q2 were lower than in the previous quarter.

Summary

According to the "Q2 De.Fi Rekt Report," DeFi experienced significant losses exceeding $204 million due to hacks and scams. While $4.5 million was recovered, the remaining unrecovered funds remained above $204 million. The second quarter witnessed a substantial increase in DeFi hacks, with 117 incidents compared to just 17 in the same quarter of the previous year. Notable targets included Atomic Wallet, Fintoch, MEV-Boost, Bitrue, and GDAC, with the Atomic Wallet exploit alone causing around 17% of the total losses, amounting to $35 million. The primary causes of losses were identified as "access control issues," responsible for $75.8 million, and exploits, accounting for $55.3 million. These findings highlight the urgent need for strengthened security measures and proactive approaches to protect users' funds and maintain the integrity of the DeFi ecosystem.