New Report Shows $15.8 Million Lost to Crypto Hacks and Exploits in August

Decrease in Losses Compared to July

In the month of August, a total of $15.8 million in cryptocurrencies were lost to hacks and exploits, according to a report by blockchain security firm Immunfi. This is a significant decrease compared to the $320.5 million lost in July. All of the incidents were targeted at decentralized finance (DeFi) protocols, with no central finance entities affected.

Details of the Incidents

Out of the 21 security incidents reported, five occurred on the Ethereum blockchain and four on BNB Chain. Coinbase's recently launched layer-2 solution, Base, experienced four security exploits shortly after its launch on August 9.

Notable Losses

One of the largest losses was the Exactly Protocol hack on August 18, where 4,323.6 Ether (ETH) worth $7.2 million in users' deposits were stolen through a malicious deposit contract. On August 25, the borrowing and lending protocol Magnate Finance, deployed on Base, orchestrated an alleged $6.5 million exit scam after suspicions were raised by prominent DeFi investigator zachXBT. The protocol's assets have been removed from the smart contract and its website and social media accounts are currently offline.

Year-to-Date Losses

According to Immunefi data, users have lost a total of $1.25 billion in crypto due to hacks and fraudulent activities so far this year. In March, DeFi protocol Euler Finance lost $195 million in a malicious flash loan attack. However, the hacker returned over 90% of the users' assets less than a month later after developers threatened legal action.