Fakoyejo Olalekan
Over $452 million was lost in the first quarter (Q1) of 2023 in the cryptocurrency market, as hackers and scammers take advantage of unsuspecting investors.
Although this is 65.23 per cent lower than the $1.3 billion lost by cryptocurrency investors during the corresponding period last year.
Join our WhatsApp ChannelThis is according to an antivirus and app provider firm, De.Fi, which suggested risk management knowledge for investors interested in trading digital currencies.
“It is crucial for investors to educate themselves on potential dangers and implement appropriate measures to protect their investments,” De.Fi warned in its report titled; ‘Report: $452m Lost in Crypto in Q1 2023. New Trends of Hacks and Scams’.
The report further stated that: “Out of the $452 million lost in Q1, a total of $215 million was lost in just the first 20 days of March, underscoring the rapid pace at which scammers have been operating in recent weeks.
“While these losses are staggering, they also mark a decrease as compared to the same period in 2022, wherein Q1 saw $1.3 billion lost.”
Investors trading on crypto platforms such as; Euler, BonqDAO, CoinDeal, Monkey Drainer, and Platypus Finance, lost $196 million, $120 million, $45 million, $16.5 million and $8.5 million, respectively.
During the period in review, Ethereum was the cryptocurrency to suffer the highest loss, with flash loan issues costing investors $200 million out of the total amount lost.
Commenting on the segment of loss, De.Fi said: “In terms of attack vectors, tokens proved to be the most popular targets this year so far — this is unsurprising given that tokens are easy to deploy, and prey on the fear of missing out experienced by many new crypto investors.
“This is especially true with the market comeback in recent days. In terms of amounts lost, though, lending and borrowing protocols took the prize, it was driven by a small number of high profile events — Euler Finance and BonqDAO.”
At the end of the first quarter this year, the report revealed $130 million was recovered, falling short of the $520 million recovered in the same period in 2022.
The recovery rate for Q1 2023 was put at 28.7 per cent, against the 40 per cent recovery rate recorded in the first quarter last year.
