Immunefi Estimates Crypto Industry Will Lose IDR 60.6 Trillion Throughout 2022 Due to Fraud

Crypto fraud is getting bigger in 2022. (photo: dock. Pixabay)

JAKARTA - Immunefi, a bug and security service platform for the Web3 ecosystem, published a report on January 6 which revealed that the crypto industry had lost a total of 3.9 billion US dollars (IDR 60.6 trillion) in 2022.

According to the report, hacking was found to be the leading cause of loss, accounting for 95.6% of the total, with fraud, and rough pull comprising the remaining 4.4%. Immunefi also found that decentralized finance (DeFi) was the most targeted sector, experiencing an 80.5% loss, compared to centralized finance (CeFi) which experienced a 19.5% loss.

“DeFi has suffered a total loss of USD 3,180,023,103 (IDR 49.5 trillion) in 2022, in 155 incidents. This amount represents a 56.2% increase compared to 2021, when DeFi lost US$2,036,015,896, in 107 incidents", said the Immunefi report, as quoted by Cointelegraph.

BNB and Ethereum were the most targeted chains, with BNB Chain surpassing Ethereum to become the most targeted in 2022. In Q4 2022, the industry suffered losses of around USD 1.6 billion (IDR 24.8 trillion), with DeFi being the main target at 57.6% and CeFi at 42.4%.

“By identifying and proactively addressing vulnerabilities, we can protect communities from harm and build trust on the ground. As we make the industry safer, everything else can evolve", said Mitchell Amador, CEO of Immunefi, as quoted by Cointelegraph.

On January 5, Cointelegraph also reported in its Finance Redefined newsletter that December's DeFi exploits were the lowest in 2022, according to on-chain monitoring and bug bounty firm CertiK. It seems that cryptocurrency hackers and exploiters may have slowed down for the 2022 holidays.

In December 2022, $62 million worth of funds were stolen from decentralized finance (DeFi) protocols. While this number is lower than in previous months, cybersecurity experts warn that the ecosystem will not see a drop in exploits, flash loans, or exit scams in 2023.