De.Fi, an antivirus and app provider firm, has revealed that the Cryptocurrency market lost $452 million to hacks and scams in the first quarter (Q1) of 2023.
In a report titled; ‘Report: $452m Lost in Crypto in Q1 2023. New Trends of Hacks and Scams’, it was disclosed that March recorded the highest loss of $215 million.
The total amount lost between January to March this year is a 65.23 per cent drop when compared to the $1.3 billion reportedly lost to hacks and scams in the first quarter of 2022.
“Out of the $452m lost in Q1, a total of $215m was lost in just the first 20 days of March, underscoring the rapid pace at which scammers have been operating in recent weeks.
“While these losses are staggering, they also mark a decrease as compared to the same period in 2022, wherein Q1 saw $1.3bn lost,” De.Fi wrote in the report.
Addressing the loss, the report said: “In terms of attack vectors, tokens proved to be the most popular targets this year so far — this is unsurprising given that tokens are easy to deploy, and prey on the fear of missing out experienced by many new crypto investors.
“This is especially true with the market comeback in recent days. In terms of amounts lost, though, lending and borrowing protocols took the prize, it was driven by a small number of high profile events — Euler Finance and BonqDAO.”
It was revealed that investors on the following cryptocurrency platforms were affected the most; Euler, BonqDAO, CoinDeal, Monkey Drainer, and Platypus Finance.
A breakdown of their loss showed Euler lost $196 million, BonqDAO lost $120 million, CoinDeal $45 million, Monkey Drainer $16.5 million and Platypus Finance $8.5 million.
The majority of the loss in the first quarter of 2023, $200 million, was attributed to flash loan issues according to De.Fi, which stated that flash loan issues have been on the rise in recent months, while Ethereum traders incurred the highest loss during the review period.
Meanwhile, the recovery funds dropped in the first quarter to $130 million, which is a recovery rate of 28.7 per cent according to the antivirus firm. This is below the $520 million recovered in Q1 last year – a 40 per cent rate.
The report warned that there’s a need for risk management and investor education to protect investors from scammers or hackers in the cryptocurrency market.
“It is crucial for investors to educate themselves on potential dangers and implement appropriate measures to protect their investments.”
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