How much did the Ethereum ecosystem lose to crypto-hacks in Q3

Ethereum

While the crypto industry has grown exponentially over the past few years, blockchain-related cybercrimes have also increased. Cyber security issues and exploitation by hackers have been a major concern across the globe, and the rising frequency of it only adds fuel to the fire.

A recent report compiled by Atlas VPN revealed that the third quarter of 2021 recorded more than $ 1.1 billion in stolen cryptocurrencies. What’s more, the Ethereum ecosystem paid the maximum price for this at over $800 million.

In addition to suffering massive financial losses, the Ethereum network has also been targeted the maximum number of times, 20 to be precise.

The most significant hack on the network during this time was the Poly Network heist, one which saw the hacker run away with $610 million in stolen cryptos. While most of the funds were returned by the “white hat” hacker, this exposed several loopholes in the network. It also underlined the enormity of the issue at hand.

The Binance Smart Chain Network (BSC) also performed poorly in cybersecurity, as it suffered seven exploits valued at $ 23 million in the third quarter. However, BSC can attribute a huge chunk of this amount to the pNetwork exploit (which is different from Poly Network). The cross-chain DeFi platform was hacked in September and the exploiters stole around $ 12 million worth of Bitcoin.

Exchange hacks, however, have significantly died down in recent years due to strong compliance and security efforts. However, seven hacks still managed to take place between July and September. The biggest hit the Japanese cryptocurrency exchange – Liquid. It resulted in the loss of $90 million in stolen tokens.

The report also found that while the number of hackers scouring networks for vulnerabilities increased, it was the carpet draws and scams that increased dramatically.

Overall, the first three quarters collectively registered 146 hack events. This was significantly more than what had happened in the past three years. It signifies a 20% increase since last year when 122 hack events and scams were seen.

This number is expected to increase as such exploits continue into the current fourth quarter. Moreover, the Ethereum ecosystem and cryptocurrency exchanges remain the primary targets for hackers, the report concluded.

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