De.Fi, an antivirus and application provider company, has revealed that the cryptocurrency market lost $452 million due to attacks and scams in the first quarter (Q1) of 2023.
In a report titled; 'Report: $452 Million Lost in Crypto in Q1 2023. New Hacking and Scam Trends', March was revealed to have recorded the biggest loss of $215 million.
The total amount lost between January and March of this year is a 65.23% drop compared to the $1.3 billion reportedly lost to hacks and scams in the first quarter of 2022.
โOf the $452 million lost in the first quarter, a total of $215 million was lost in the first 20 days of March alone, underscoring the rapid pace at which scammers have been operating in recent weeks.
โWhile these losses are staggering, they also mark a decrease compared to the same period in 2022, in which $1.3 billion was lost in the first quarter,โ De.Fi wrote in the report.
Addressing the loss, the report said: โIn terms of attack vectors, tokens have proven to be the most popular targets this year so far; This is not surprising given that tokens are easy to implement and take advantage of the fear of missing out that many experience. new crypto investors
โThis is especially true with the return of the market in recent days. However, in terms of amounts lost, lending and lending protocols took the prize, it was driven by a small number of high-profile events: Euler Finance and BonqDAO."
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Investors in the following cryptocurrency platforms were revealed to have been hit the hardest; Euler, BonqDAO, CoinDeal, Monkey Drainer, and Platypus Finance.
A breakdown of their loss showed that Euler lost $196 million, BonqDAO lost $120 million, CoinDeal $45 million, Monkey Drainer $16.5 million, and Platypus Finance $8.5 million.
Most of the loss in the first quarter of 2023, $200 million, was attributed to fast lending issues according to De.Fi, which claimed that fast lending has increased in recent months, while Ethereum merchants suffered the highest loss during the review period.
Meanwhile, recovery funds fell in the first quarter to $130 million, representing a recovery rate of 28.7 percent according to the antivirus firm. This is down from the $520 million recovered in the first quarter of last year, a rate of 40 percent.
The report warned that there is a need for risk management and investor education to protect investors from scammers or hackers in the cryptocurrency market.
"It is crucial that investors educate themselves about the potential dangers and implement the appropriate measures to protect their investments."
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