Web3 projects lost over $2 billion in hacks and exploits during the first six months of 2022 -- more than all of 2021 combined.
According to CertiK's quarterly Web3 security report for Q2, This report shows that the cryptocurrency industry is still plague
d with scams and hacks and new threats such as flash loan attacks.
CertiK focuses on the last threat category, which was created by flash loans. This decentralized finance system allows borrowers to access large amounts of cryptocurrency in very short periods.
Flash loans can be misused maliciously to manipulate a token's value on exchanges or buy all governance tokens in a project and vote to withdraw all funds. This is what happened to eanstalk in May.
CertiK's complete report states that $308 million was lost in 27 flash loan attacks during Q2 2022. This is a huge increase from the $14 million flash loans suffered in Q1.
Between Q1 and Q2 this year, phishing attacks increased in frequency
. CertiK recorded 290 in its most recent quarter, compared to 106 in the previous three months.
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The vector for most phishing attempts was Discord, which is a sign of its popularity as the preferred social network for cryptocurrency and NFT scenes, despite secu
Although "rug pulls," where founders stop development and steal funds, are less frequent, tens to millions of dollars were still lost.
CertiK discovered that $37.46million was lost to rug pullings in Q2 this year. This is 16.5 percent less than the previous quarter.
However, the report attributes some of this decline to the current crypto winter. This may have been driving away novice investors w
ho might be tricked by scam projects.