According to a survey from software provider De.Fi, losses from crypto theft fell in the first quarter of 2023 compared to the previous year, as did fund recovery. Euler Finance has a significant investment in both.
According to a survey by antivirus and software vendor De.Fi, crypto hackers and fraudsters made $452 million in the first quarter of 2023. But, this is both good and bad news because losses were smaller than the $1.3 billion reported in the first quarter of 2022. And yet, with these figures, recovery rates have plummeted.
There is a Dilemma in the Crypto Theft Statistics
According to the study, the first three weeks of March accounted for over half of this quarter’s crypto losses ($215 million). This quarter’s loss leaders were Euler Finance and Bonq DAO attacks, with $196 million and $120 million, respectively. The Ethereum blockchain incurred the most losses as a result of these incidents. Nevertheless, Binance compounded those losses by hosting 18 Ethereum tournaments. The CoinDeal phishing fraud finished in third place with $45 million, while the Monkey Drainer phishing scam came in fourth place with $16.5 million.
Six flash credit assaults accounted for the highest crypto loss of almost $200 million among the 49 fraud incidents evaluated in the paper, with Euler Finance accounting for the bulk of the overall loss. With 17 cases, smart contract exploitation was the most prevalent type. Despite being responsible for only five frauds, decentralized finance (DeFi) received the lion’s share of $336 million.
Money recovered from cyber assaults worth$130 million in the first quarter. It is important to mention that all of this crypto money was recovered in March, with nearly all ($129 million) coming from funds returned by Euler Financial hackers.
Similarly, when we examine the recovery rates of stolen assets during the last year, it is clear that these rates have declined significantly by 2023. In the first quarter of 2022, 40% of the $1.3 billion worth of crypto that waslost due to exploits($520 million) was restored. Its percentage fell to 38.7 percent in the first quarter of this year.
