Renowned Web3 outlet De.Fi revealed that July 2023 has emerged as the worst month for the crypto market, with losses amounting to a staggering $486 million, according to the latest report. This figure is more than six times the total losses witnessed in the entire year of 2022, highlighting the severity of the current situation.
The distressing trend of security incidents continues to plague the crypto market, as revealed by the quarterly report by CertiK, a blockchain security company. In the second quarter of 2023, more than $300 million worth of digital assets succumbed to crypto hacks and exploits, distributed among a total of 212 incidents.
Security Incidents Continue To Plague Crypto Market
The recent figures for losses in July alone have raised concerns and drawn attention. The recent De.Fi report follows a string of high-profile hacks and exploits in July, coupled with increased legislative scrutiny surrounding cryptocurrencies and digital assets.
Tragically, the recovery efforts for the month have been grossly insufficient, with only $6.15 million (less than 1% of the total losses) successfully recovered so far. Researchers at De.Fi has expressed concern over the lack of effective measures to expedite fund recovery, emphasizing its crucial role in mitigating the impact of such unfortunate incidents.
Most of the losses in July were recorded on the Ethereum network, accounting for $447 million across 36 cases. Notable incidents include the Multichain hack, which resulted in a loss of $231 million, and the Alphapo exploit, costing approximately $100 million. The Base network came in second with a reported loss of $23 million from a single case, followed by Binance at nearly $11 million across 18 cases.
The primary cause of losses was attributed to “access control issues,” resulting in a staggering $364 million in losses. Rugpulls accounted for around $36 million in losses across 38 reported cases, while reentrancy attacks led to approximately $78 million in losses.
Amidst the gloom, there was one silver lining – July saw no reported cases of exit scams. Nevertheless, stakeholders in the crypto industry are now facing heightened scrutiny to address security challenges and safeguard investors’ assets.
However, as the market grapples with its worst month in years, industry players and regulators must work together to implement robust security measures, fostering a safer environment for digital asset transactions and protecting against malicious activities.
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