Web3 Crypto Exchanges Lose Record Amounts of Attacks

Attackers and scammers have pardoned decentralized cryptocurrency exchanges (also summarized under the keyword Web3) by record amounts in the current year: in the first half of 2022, the exchanges lost a total of more than 2 billion USD – and this is already more than the total amount For the previous year 2021 through a specific attack using what is known as a quick loan, fraudsters stole $308 million in the second quarter of this year – a massive increase from the previous quarter, when they lost $14 million using just this type of attack. That’s according to the quarterly Web3 Security Report by security specialist CertiK, and published by The Verge.

Web3 crypto platforms enable decentralized trading in cryptocurrencies and secure transactions via the blockchain. They are increasingly victims of cyber-attacks that exploit vulnerabilities or deceive users with phishing or phishing. More and more attacks use Quick Loan and do a great deal of damage, The Verge writes about the safety report. The $308 million loss in the second quarter came from a total of 27 quick loan attacks, according to a CertiK report. In comparison, the number of phishing attacks increased from 106 in the first quarter to 290 in the second.

With Quick Loan, an amount of money is borrowed in one transaction for a very short period of time (a few seconds) and returned immediately; If a customer makes a profit with this “smart” contract through their trade, the lender (the trading platform) usually receives a commission on that contract. Cryptocurrency exchange Beanstalk was the victim of a high-profile ‘flash loan’ attack in April, taking advantage of Beanstalk’s ability to grant its users voting rights over changes to the platform’s code, in proportion to their stake in Bean’s cryptocurrency, Beanstalk-users-own. The attackers briefly obtained enough cryptocurrency to force a token change to transfer all cryptocurrencies on Beanstalk to themselves.

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Earlier this year, attackers exploited a vulnerability in the code of financial platform Qbit Finance. Qbit Finance’s decentralized trading platform allows you to exchange one cryptocurrency for another; The attackers took advantage of the vulnerability and received $80 million worth of Binance coins for a deposit of zero Ether.

Newer cryptocurrency projects with a decentralized structure and use of the blockchain (also called DeFi, “decentralized finance”, i.e. decentralized finance) are also known as Web3 (or Web 3.0 – as opposed to Web 2.0); They combine decentralization, automated transactions, blockchain protection, and “smart” contracts.


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