Home News ImmuneFi report $10B in DeFi hacks and losses across 2021

ImmuneFi report $10B in DeFi hacks and losses across 2021


On Thursday, ImmuneFi, decentralised finance (DeFi) security platform and bug bounty programme, released official research that predicted the entire volume of losses in the cryptocurrency marketplaces in 2021. According to the company’s study, losses caused by hackers, frauds, and other malicious activities totalled more than $10.2 billion in the previous year.

In fact, ImmuneFi has consistently provided seven-figure pay-outs to whitehat hackers and other good-willed entities for averting protocol compromises for a variety of well-established DeFi protocols, including Synthetix, Chainlink, SushiSwap, and PancakeSwap, among others.

According to the research, there were 120 cases of crypto exploits or fraudulent rug-pulls in 2021. With Poly Network having the largest value at $613 million, Venus and BitMart having $200 million and $150 million, respectively.

Additionally, other notable additions to the list include Alpha Finance and Cream Finance. Which were both hacked for $37.5 million each, Yearn.finance’s $11 million, Furucombo’s $14 million evil contract exploit. And the infamous Alchemix reverse rug, in which the platform’s users claimed a welcome fortune due of $6.5 million following a withdrawal issue with one of the platform’s smart contracts synthetic assets, alETH.

In comparison to the previous year, which had 123 incidents totalling $4.38 billion, a 137% increase in both the frequency and volume of security breaches occurred in 2021.

“Year of catastrophic losses”

Despite what he termed as a “year of catastrophic losses” for the sector, Mitchell Amador, CEO and creator of Immunefi, expressed confidence for the future of on-chain security.

“Despite the introduction of new vulnerabilities in the onchain economy, the community is reacting rapidly. At Immunefi alone, we saved twice as much as we lost to exploitation this year. And security best practices are spreading throughout the community.”

Moreover, Amador noted ImmuneFi’s participation in arranging Polygon’s (MATIC) recent $3.47 million payout to two whitehat hackers. For their significant role in preventing a “major” breach in the network’s proof-of-stake Genesis contract. Which put almost the entire $10 billion MATIC token supply at risk.

ImmuneFi awarded the largest bounty in DeFi history to renowned white hat coder Alexander Schlindwein in September last year. For averting a potential $10 million bug problem in the automated market maker, or AMM, protocol Belt Finance.

Schlindwein received $1.05 million in compensation. Including $1 million from Belt Finance and $50,000 from Binance Smart Chain’s Priority One programme.

ImmuneFi secured $5.5 million from a consortium of institutional investors in October. Including Blueprint Forest and Electric Capital, with the goal of growing its security services across the DeFi business. In a concerted attempt to limit the prevalence and financial effect of benign security breaches.

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