The study revealed that cryptocurrency losses in the nature of mining and carpet pulling have increased by 137 percent from the figure calculated in 2020.
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Decentralized finance, or DeFi, security platform and bug bounty service ImmuneFi published an official report on Thursday, which calculates the total volume of losses in the crypto market in 2021. According to its report, the company found that losses due to hacking, phishing and other malicious activities exceeded $10.2 billion dollars in the past year.
Responsible for protecting over $100 billion worth of assets for several well-established DeFi protocols, including Synthetix, Chainlink, SushiSwap, and PancakeSwap, among others, ImmuneFi has regularly facilitated payouts seven figures for blatant hackers and other goodwill entities to prevent protocol compromises.
According to the report, in 2021, there were 120 cases of crypto mining or fraudulent fraud, the highest value hack was Poly Community with $613 million, followed by Venus and BitMart with respectively $200 million and $150 million.
Other notable entries on the list are Alpha Finance and Product Finance, both of which were hacked for $37.5 million, $11 million in annual finance, $14 million in evil contract exploits. million dollars of Furucombo, as well as the infamous Alchemix reversal rug in which users of the platform received a welcome well fortune due due at $6.5 million after withdrawal problems arose with one of the platform’s smart contract aggregation assets, alETH.
2021 saw a significant increase in both frequency and number of security breaches compared to the previous year, recording 123 cases totaling $4.38 billion, an increase of 137% percent.
We just released our report for 2021 on crypto losses stemming from hacks and scams.
In total, the DeFi ecosystem suffers a loss of $10,210,188,549
Read more facts and figures here: https://t.co/gCWiOqjhhZ pic.twitter.com/zEX28yg0vD
– Immunefi (@immunefi) January 7, 2022
In conversation with Cointelegraph, Immunefi CEO and Founder, Mitchell Amador, spoke about his optimism for the future of onchain security, despite what he describes as “a losing year.” serious loss” to the industry.
“Despite the emergence of brand new vulnerabilities in the onchain economy, the community is adapting quickly. At Immunefi alone, we’ve saved double what was lost to mining this year, and security best practices are circulating around the community.”
Amador cited ImmuneFi’s role in facilitating Polygon’s recent $3.47 million payment to two white hackers for their instrumental role in preventing a vulnerability it described as “critical.” in the network’s proof-of-stake Genesis contract puts nearly all of the $10 billion MATIC token supply at risk.
Related: Recounting the biggest DeFi hack of 2021
Last September, ImmuneFi hosted what was reported at the time as the largest bounty in DeFi’s history to prominent white-hat programmer Alexander Schlindwein for averting a potential bug crisis. worth $10 million in the automated marketplace maker, or AMM, Belt Finance protocol.
Schlindwein received a total compensation of $1.05 million, of which $1 million was granted by Belt Finance with ImmuneFi acting as the middleman and the remaining $50,000 provided by the Preferred program First of the Binance Sensible Chain.
In October, ImmuneFi announced a $5.5 million funding round from several institutional investors, including Blueprint Forest, Electric Cash, with the intention of expanding its security offerings across the DeFi industry. in a concerted effort to reduce the prevalence and financial impact of benevolent security in space.