Web3 Security 2023 State Revealed, Nearly $2 Billion Lost

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In 2023, the Web3 landscape witnessed a significant number of security incidents. The CertiK report revealed that a total of $1.84 billion was lost in 751 security incidents, a 51% drop from the $3.7 billion lost in 2022. Despite this drop, the scale of these incidents remains alarming, with only the ten costliest the incident amounted to $1.11 billion in losses. The average loss per incident was $101,132, significantly lower than the average of $2.45 million per incident, indicating a large disparity in the impact of individual incidents.

Most Vulnerable Chains and Attack Vectors

The BNB chain suffered the highest number of security incidents with 387 hacks, scams and exploits, resulting in $134 million in losses. Ethereum, despite the lower number of incidents (224), suffered greater financial damages totaling $686 million. Notably, private key compromise emerged as the costliest attack vector, accounting for nearly half of all financial losses ($880,892,924) in just 47 incidents. This highlights a critical vulnerability related to private key security in the Web3 space.

Analysis of trends and developments

CertiK’s report goes beyond the raw data to offer in-depth analysis of how these breaches have impacted the wider Web3 ecosystem. The report includes research on new developments, such as sophisticated negotiation tactics by hackers and the continued search for institutional adoption in the blockchain space. These insights are vital for stakeholders, including blockchain developers, crypto investors, politicians and digital currency enthusiasts, to understand and navigate the complexities of this fast-growing industry.

Key highlights and insights

In the third quarter of 2023, the most significant financial losses were reported, amounting to $686,558,472 from 183 incidents. The report also highlights the ongoing challenge of cross-chain interoperability, with security breaches affecting multiple chains accounting for $799 million in losses in just 35 incidents. In addition, the report delves into significant events such as “backdated bug bounty” negotiations and major compromises on the backend of the hardware wallet, offering a clear picture of the evolving landscape of institutional adoption of Web3​​.

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“Hack3d: The Web3 Security Report 2023” is an indispensable resource for anyone invested in the world of Web3. The report not only summarizes important security developments from the past year, but also provides forecasts and insights that help stakeholders prepare for the challenges and opportunities ahead. This comprehensive analysis is critical to understanding the current state of Web3 security and the direction it is headed.

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