22. September 2023

Overview of Q1 2023 Crypto Losses

• Hackers were able to gain access to more than $320 million in the first quarter of 2023.
• BNB Chain had the most incidents during the quarter, while Ethereum saw the largest amount lost.
• 60% of losses came from the Euler Finance hack and a portion was recovered through negotiations with hackers.

Incidents by Blockchain

BNB Chain experienced 139 incidents in Q1 2023, resulting in significant losses. Ethereum also faced a large number of thefts, but with fewer incidents – still leading to higher losses due to its size and activity on the network.

Euler Finance Hack

On March 13th, Euler Finance was hacked through flash loan exploit, leading to losses of over $195 million. After almost a month of back-and-forth negotiations with hackers, 90% of funds were recovered by April 4th.

Sentiment Protocol Recovery

Lending protocol Sentiment was able to recover around $870,000 after giving a bounty of $95,000 to those responsible for taking almost a million dollars from their platform on April 6th.

Other Events Impacting Crypto Industry

The low amount of losses may have been impacted by events happening off-chain as well – such as issues with Silvergate Bank and USD Coin USDC depegging at Silicon Valley Bank’s collapse.