A new report by Blockchain auditing and security company CertiK has revealed that over $2 billion was lost to hackers by Blockchain projects around web 3.0.
This figure, the report said is for the first six months of 2022, and also more than the entire figure of 2021.
According to the report, about $308 million were lost across 27 flash loan attacks in the second quarter, from $14 million in Q1.
Used maliciously, flash loans can be deployed to manipulate the value of a crypto token on exchanges.
It can also be used to vote for the withdrawal of all funds, after being used to buy up all the governance tokens in a project.
The report also said that this decentralized finance (DeFi) mechanism can allow borrowers to access extremely large amounts of cryptocurrency for very short periods.
The report also said that there has been an increase in rug pull, a case in the crypto industry where a development team suddenly abandons a project and sells or removes all its liquidity.
There has been a rise in the report of crypto scams and frauds in recent times.
Recently, a Crypto firm, Harmony’s Horizon Bridge, was hacked and over $100 million stolen.
The same week, about $100 million worth of Ether, Tether (USDT), Wrapped Bitcoin (WBTC), and BNB was converted into 85,837 ETH through the decentralized exchange Uniswap.
The firm was forced to stop the Horizon bridge to prevent further transactions.
