Crypto Scams and Exploits Down 70% in the First Quarter of the Year, Over $370M Lost So far

According to data from Rekt Database, the crypto industry lost more than $370 million to exploits and scams in the first quarter of this year. The data shows that Euler Finance, CoinDeal, and BonqDAO recorded the most substantial losses.

Quarter one Losses

The amount lost to exploits and scams rose massively from January to March. In the first month of the year, the crypto industry lost $14.5 million. Then the figure grew 880% to $142.3 million the following month. It rose further in March to reach $220 million.

It is worth highlighting that the $370 million loss posted this quarter reflects a 70% decline from the $1.3 billion loss realized in the first quarter of last year.

Biggest Losers

As mentioned earlier, Euler Finance, CoinDeal, and BonqDAO accounted for the biggest percentage of the amount lost.

Euler finance encountered a flash loan attack on March 13, which led to losses of up to $196 million. The attack was the biggest in this quarter, followed by BonqDAO, which suffered a $120 million loss as a result of an Oracle issue last month.

CoinDeal comes in third. This Ponzi scheme stole from crypto investors over $45 million in January. The US Securities and Exchange Commission has since charged individuals involved in the scam, including Neil Chandran, Michael Glaspie, Linda Knott, Garry Davidson, and Amy Mossel.

The combined loss ($317 million) of BonqDAO and Euler Finance alone accounts for 87% of the total loss posted since the start of the year. Rekt Database indicates that most of the losses in this quarter stemmed from flash loan attacks, with oracle issues coming in second.

Most Attacked Chains

BNB Chain was the most exploited network by criminals. Of the 47 attacks reported since January, BNB Chain encountered 18, representing 38% of the total exploits. Ethereum was the second-most attacked, recording 10 exploits or 21% of all attacks. Finally, Arbitrum ranked third after suffering 7 attacks.

Recovery Rate

The Rekt Database report shows no funds were recovered from the January and February attacks. But around $1.3 million was recovered this month. That figure represents just 0.3% of the total amount lost this quarter.

This recovery rate is pretty lower than the rate recorded in the same quarter last year. Of the $1.2 billion lost to exploits and scams, $520 million was recovered. That’s almost 40% of the amount lost.