The losses for July are six times bigger than the losses recorded during the whole of 2022.
Cryptocurrency enthusiasts experienced a turbulent July this year, as the industry recorded its worst losses so far, culminating in a staggering $486 million, as per research conducted by Web3 platform, De.Fi.
The figure is a dramatic escalation from 2022, amounting to more than a sixfold increase.
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The lion's share of these losses, totaling $447 million, occurred on the Ethereum network. High-profile incidents include the infamous Multichain breach and the Alphapo exploit, leading to losses of $231 million and $100 million, respectively.
Other notable losses were suffered on the Base network and Binance, with a single case on Base accounting for $23 million, while Binance experienced nearly $11 million in losses across 18 separate incidents.
The research document quoted a disappointing recovery statistic from the De.Fi researchers, indicating a potential crisis in handling such threats effectively.
Regrettably, the recovery efforts in July 2023 were woefully inadequate, with only $6,796,915 recouped from the vast $486.35 million lost.
The report attributed the majority of lost funds to “access control issues,” amounting to $364 million. Meanwhile, rug pulls in more than 38 reported cases resulted in an approximate loss of $36 million. Reentrancy attacks further compounded these figures, contributing to an additional loss of about $78 million.
The insufficient recovery rates for stolen or lost digital assets, barely touching 1% in July with a mere $6.15 million recouped, has further aggravated the scenario. It is clear that the crypto industry's ability to swiftly and efficiently recover stolen assets is crucial in mitigating the consequences of such unfortunate events.
Although July presented a grim picture for the crypto market, the De.Fi report offered one glimmer of hope, stating no exit scams were reported during the month. Nonetheless, continuous vigilance and innovation in security measures remain essential for the industry's health and growth.
