July ended up being the least lucrative month of the year as a result. As a result of the misuse of express loans, assets worth around $8.7 million were removed. These enable traders to get unsecured asset borrowing using smart contracts as opposed to outside intermediaries.
In general, these loans pose little harm, but occasionally attackers may utilize them to influence the price of smaller, less liquid tokens in order to benefit. The DeFi Conic Finance protocol was the most noteworthy instance, from which 1,700 Ether (ETH) worth $3.26 million was extracted. Another $8.6 million or more in harm was caused through exit frauds.
Out of the $303 million in losses this month, investors lost around $285 million as a result of hacks and exploits, including assaults on the Curve Finance protocol by taking advantage of a flaw in the Vyper program code. Digital assets worth $52 million were therefore lost by Curve Finance.
Another noteworthy instance occurred early in July when the Multichain protocol was attacked. The project stopped operating and said that its CEO Zhaojun had been seized by Chinese officials back in May after suffering a loss of almost $125 million.
July’s Loss Becomes a Record for 2023
The crypto sector suffered a $303 million loss of assets in July, while in the first half of 2023, hackers stole almost $479.4 million. The two decentralized wallets Atomic Wallet ($65 million) and the DeFi protocol Euler Labs ($197 million) suffered the most losses. The toughest month was really April since $203.3 million was stolen during that time.
DeFi protocol attacks occurred in virtually all instances ($414 million). With a loss of $287 million, the majority of these hacks targeted Ethereum projects.