The cryptocurrency industry suffered losses of $3.9 billion in 2022, according to a report published by Immunefi, the leading bug bounty and security services platform for web3. The report revealed that hacks were the main cause of losses, accounting for 95.6% of the total, while fraud, scams and rug pulls made up the remaining 4.4%. In total, $3.8 billion was lost to hacks in 2022, representing a 58.3% increase from the previous year.

Decentralized finance (DeFi) was the most targeted sector, with 80.5% of losses occurring in this area. In comparison, centralized finance (CeFi) accounted for just 19.5% of losses. The BNB Chain and Ethereum networks were the most targeted, with 63.3% of attacks occurring on these two chains. BNB Chain suffered the most individual attacks, with 65 incidents, while Ethereum witnessed 49 attacks.

The fourth quarter of 2022 saw the greatest losses, with $1.6 billion being stolen. The majority of these losses were suffered by FTX and BNB Chain, which lost a combined $1.2 billion, or 75.3% of Q4 losses. Hacks accounted for 92.6% of losses in Q4, with DeFi being the main target at 57.6% of losses. BNB Chain and Ethereum were again the most targeted chains, with 36% and 28% of attacks respectively.

“Looking at the losses suffered by the community in 2022 is a reminder of the importance of prioritizing security and implementing robust and consistent measures moving into 2023,” said Mitchell Amador, CEO of Immunefi. “By proactively identifying and addressing vulnerabilities, we can protect the community from harm and build trust in the field. As we make the industry safer, everything else can flourish.”