Mar 06, 2023
DeFi Space Suffers $21M Crypto Loss in February
The decentralized finance (DeFi) space suffered a massive blow in February as seven protocols were exploited resulting in the loss of at least $21 million in crypto. According to data analytics platform DefiLlama, the largest loss was the flash loan reentrancy attack on Platypus Finance, which cost the protocol $8.5 million.
The first attack of the month was the price oracle attack on BonqDAO on February 1. Blockchain security firm PeckShield estimated the losses to be around $120 million, but it was later revealed that hackers only cashed out around $1.7 million due to a lack of liquidity on BonqDAO.
The next attack was the reentrancy attack on Orion Protocol on February 2, which led to a loss of roughly $3 million. Orion Protocol CEO Alexey Koloskov confirmed the attack, assuring users that their funds were safe and secure.
On February 10, dForce network suffered a reentrancy attack resulting in losses of around $3.65 million. However, all funds were returned when the hacker came forward as a whitehat hacker.
Platypus Finance was hit with a flash loan attack on February 16, resulting in $9.1 million being drained from the protocol. Platypus auditor Omniscia noted that the attack was possible because of code in the wrong order. On February 23, the team announced that they are seeking to return around 78% of the main pool funds by reminting frozen stablecoins.
Hope Finance fell prey to a smart contract exploit on February 20, with roughly $2 million stolen from users. A member of blockchain security firm CertiK’s team noted that the scammer had changed the details of the smart contract, which led to funds being drained from Hope Finance’s genesis protocol.
Multichain exchange aggregator Dexible was hit by an exploit on February 17, resulting in the loss of $2 million worth of cryptocurrency. The Dexible team found that the attacker had used the app’s selfSwap function to move the funds from users that had authorized the app to move their tokens.
The last attack of the month was on BNB Chain-based DeFi protocol LaunchZone, which had $700,000 worth of funds drained on February 27. Blockchain security firm Immunefi revealed that an attacker had leveraged an unverified contract to drain the funds.
The February figures are a stark increase from January, according to DefiLlama figures. The tracker lists only $740,000 in hacks to DeFi protocols in the month across two protocols — Midas Capital and ROE Finance.
The rise in DeFi exploits has also been noted in blockchain data firm Chainalysis’ 2023 Crypto Crime Report, which revealed that hackers stole $3.1 billion from DeFi protocols in 2022, accounting for more than 82% of the total amount stolen in the year.
With the DeFi space growing in popularity, it is essential for projects to prioritize security and implement measures to protect their users from losses. NFTs, or non-fungible tokens, are becoming a popular way for DeFi projects to promote their platforms and increase user engagement. NFTs are unique digital assets that are stored on the blockchain and can be used to create and store digital collectibles, games, and other digital assets.
NFTs have become increasingly popular in the DeFi space, with many projects leveraging them to increase user engagement and promote their platforms. NFT marketing agencies are also popping up, offering services such as Twitter NFT marketing and NFT promotion. Web3 agencies are also offering services such as selling NFTs, creating NFTs, and providing NFT marketing solutions.
As the DeFi space continues to grow, it is essential for projects to prioritize security and implement measures to protect their users from losses. NFTs are an increasingly popular way for DeFi projects to promote their platforms and increase user engagement, and NFT marketing agencies are offering services such as Twitter NFT marketing and NFT promotion. Web3 agencies are also offering services such as selling NFTs, creating NFTs, and providing NFT marketing solutions.
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