Crypto Market Loses $670 Million in Q2 Worldwide

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The global cryptocurrency market lost at least $670 million in the April-June (Q2) quarter, and 97% of the losses were due to hacks and scams, according to a report released Thursday.



Crypto losses in the second quarter increased by 52% from $440 million in the same period last year.

“The majority of these funds were lost to four specific projects, Beanstalk known as the decentralized stablecoin protocol, the Harmony Horizon Bridge, Mirror Protocoland Fei Protocol“, according to data from Immunefi, Web3’s leading bug bounty platform.

“In the second quarter of 2022, most of the losses – 96.92% – came from hacks. DeFi protocols,” the report notes.

Immunefi teams protect over $100 billion in user funds.

“We reviewed all cases where blackhat hackers exploited various encryption protocols, as well as cases of suspected fraudulent protocols and founders who conducted a draw in Q2 2022,” the company said.

They located 50 such cases, including successful and semi-successful hacking attempts, as well as fraud events, in the second quarter.

The most common type of crypto fraud are investment scams and as of 2021, the United States Federal Trade Commission (FTC) received complaints about losses totaling $575 million due to this type of fraud.

People lost over $185 million worth of crypto in the US through romance scams in the first quarter of this year as fraudsters use new ways to steal from their victims, with romance scams taking a prominent place.

Nearly 46,000 Americans said they lost more than $1 billion in crypto to scams since the start of 2021, according to a recent FTC report.

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