SlowMist Data Shows Web3 Security Breaches Caused
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Posted On: 05/07/2024 5:14:02 PM
SlowMist Data Shows Web3 Security Breaches Caused Nearly $100M Loss
Data from blockchain security platform SlowMist has revealed that security breaches in the nascent Web3 space resulted in losses worth almost $100 million last month. Said to be the next iteration of the internet, Web3 runs on decentralized blockchain technology that offers users unprecedented ownership and control over their data. However, despite ostensibly offering better security and data control compared to the regular internet, Web3 is subject to regular security breaches.
A recent security report from popular security platform SlowMist found that a total of 37 Web3 security breaches perpetrated in April resulted in approximately $90.81 million in losses. While this was a 10% reduction in the security breach-related losses suffered by the Web3 space in March ($104 million), it shows that Web3 still suffers from a critical security problem that costs Web3 investors tens of millions of dollars.
According to SlowMist’s incident database on blockchain security, contract vulnerabilities, exit scams, hacked accounts and third-party vulnerabilities were mostly to blame for the security breaches. Hackers managed to make away with $21 million from decentralized finance (DeFi) platforms alone in April, dealing a major blow to the emerging DeFi space.
DeFi protocol OpenLeverage suffered an attack on April 1, 2024, which cost it almost $260,000 while an attack on decentralized exchange FixedFloat on April 2, 2024, resulted in the loss of almost $3 million. Hackers took advantage of the third-party, service-linked vulnerabilities associated with FixedFloat to carry out this attack.
CondomSOL, which is based on Solana, lost nearly $920,000 to one exit scam involving wallets tied to CondomSOL two days later on the April 4, 2024, with Zest Protocol (a BTC-native platform that lends cryptos) announcing the attack on April 12, 2024. Unscrupulous parties removed close to $1 million in cryptocurrency by lending out more than the value of their collateral before withdrawing 324000 STX from this platform.
On April 15, 2024, the Web3 segment received the news that hackers had exploited the wallet of the deployer of the Grand Base, a Web3 project based on the L2 protocol. This allowed hackers take the project’s liquidity pool and steal around $2 million (615 ETH).
Four days later, on April 19, 2024, Hedgey Finance suffered an attack attributed to contract vulnerabilities that cost close to $47.7 million in losses that mostly happened on Arbitrum’s network.
Customers of the decentralized forum for betting, dubbed ZKasino, have also raised questions about the forum’s legitimacy and pointed to the possibility of ZKasino being an exit scam that lost nearly $33 million.
This data from SlowMist is likely to spur entities such as NextPlat Corp. (NASDAQ: NXPL) (NASDAQ: NXPLW) that make use of Web3 technologies to consistently improve their safety measures so that security breaches can be forestalled.
NOTE TO INVESTORS: The latest news and updates relating to NextPlat Corp. (NASDAQ: NXPL, NXPLW) are available in the company’s newsroom at https://ibn.fm/NXPL
Please see full terms of use and disclaimers on the Web3MediaWire website applicable to all content provided by W3MW, wherever published or re-published: https://www.Web3MediaWire.com/Disclaimer
Data from blockchain security platform SlowMist has revealed that security breaches in the nascent Web3 space resulted in losses worth almost $100 million last month. Said to be the next iteration of the internet, Web3 runs on decentralized blockchain technology that offers users unprecedented ownership and control over their data. However, despite ostensibly offering better security and data control compared to the regular internet, Web3 is subject to regular security breaches.
A recent security report from popular security platform SlowMist found that a total of 37 Web3 security breaches perpetrated in April resulted in approximately $90.81 million in losses. While this was a 10% reduction in the security breach-related losses suffered by the Web3 space in March ($104 million), it shows that Web3 still suffers from a critical security problem that costs Web3 investors tens of millions of dollars.
According to SlowMist’s incident database on blockchain security, contract vulnerabilities, exit scams, hacked accounts and third-party vulnerabilities were mostly to blame for the security breaches. Hackers managed to make away with $21 million from decentralized finance (DeFi) platforms alone in April, dealing a major blow to the emerging DeFi space.
DeFi protocol OpenLeverage suffered an attack on April 1, 2024, which cost it almost $260,000 while an attack on decentralized exchange FixedFloat on April 2, 2024, resulted in the loss of almost $3 million. Hackers took advantage of the third-party, service-linked vulnerabilities associated with FixedFloat to carry out this attack.
CondomSOL, which is based on Solana, lost nearly $920,000 to one exit scam involving wallets tied to CondomSOL two days later on the April 4, 2024, with Zest Protocol (a BTC-native platform that lends cryptos) announcing the attack on April 12, 2024. Unscrupulous parties removed close to $1 million in cryptocurrency by lending out more than the value of their collateral before withdrawing 324000 STX from this platform.
On April 15, 2024, the Web3 segment received the news that hackers had exploited the wallet of the deployer of the Grand Base, a Web3 project based on the L2 protocol. This allowed hackers take the project’s liquidity pool and steal around $2 million (615 ETH).
Four days later, on April 19, 2024, Hedgey Finance suffered an attack attributed to contract vulnerabilities that cost close to $47.7 million in losses that mostly happened on Arbitrum’s network.
Customers of the decentralized forum for betting, dubbed ZKasino, have also raised questions about the forum’s legitimacy and pointed to the possibility of ZKasino being an exit scam that lost nearly $33 million.
This data from SlowMist is likely to spur entities such as NextPlat Corp. (NASDAQ: NXPL) (NASDAQ: NXPLW) that make use of Web3 technologies to consistently improve their safety measures so that security breaches can be forestalled.
NOTE TO INVESTORS: The latest news and updates relating to NextPlat Corp. (NASDAQ: NXPL, NXPLW) are available in the company’s newsroom at https://ibn.fm/NXPL
Please see full terms of use and disclaimers on the Web3MediaWire website applicable to all content provided by W3MW, wherever published or re-published: https://www.Web3MediaWire.com/Disclaimer
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