NEW DELHI: Blockchain projects around Web3.0 lost more than $2 billion to hacks and exploits in the first six months this year, a new report has shown.
According to Blockchain auditing and security company CertiK, this year’s hacking figure is more than all of 2021 combined.
About $308 million were lost across 27 flash loan attacks in the second quarter, from $14 million in Q1.
Flash loans are a decentralised finance (DeFi) mechanism that lets borrowers access extremely large amounts of cryptocurrency for very short periods of time.
If used maliciously, flash loans can be used to manipulate the value of a certain token on exchanges or buy up all of the governance tokens in a project and vote to withdraw all of the funds, as happened to Beanstalk in April, reports The Verge.
About $37.46 mn was lost to “rug pulls” in Q2, down 16.5 pc from the previous quarter. A rug pull in the crypto industry is when a development team suddenly abandons a project and sells or removes all its liquidity.