According to the report, crypto losses in the form of hacks and rug-pulls increased by 137% from the amount calculated in 2020.
ImmuneFi, a security platform and bug reward service for decentralised finance, or DeFi, released official research on Thursday that computed the total volume of losses in the crypto industry in 2021. As per the company's research, losses caused by attacks, frauds, and other malevolent activities crossed $10.2 billion in the previous year.
ImmuneFi has consistently provided seven-figure pay to whitehat hackers and other good-willed organizations for avoiding protocol compromises for a variety of well-established DeFi protocols, which include Synthetix, Chainlink, SushiSwap, and PancakeSwap, among others.
The report stated there were 120 cases of crypto hacks or fraud rug-pulls in 2021, with Poly Network having the greatest value at $613 million, Venus with $200 million, and BitMart having $150 million.
Alpha Finance and Cream Finance, which were both exploited for $37.5 million, Yearn. finance's $11 million, Furucombo's $14 million evil contract hack, and the notorious Alchemix reverse rug, in which the platform's users asserted delightful luck due of $6.5 million after a withdrawal problem came up with one of the platform's smart contracts synthetic assets, alETH.
In contrast to the last year, which had 123 incidents worth $4.38 billion, a 137% rise in both the number and amount of security violations happened in 2021.
Mitchell Amador, the CEO and founder of Immunefi, expressed his enthusiasm for the future of on-chain security in a discussion amid what he considered as a “year of dramatic losses” for the sector.
“Despite the appearance of entirely new vulnerabilities in the onchain economy, the community is adapting rapidly. At Immunefi alone, we saved double the amount lost to exploitation this year, and security best practices are circulating throughout the community.”
ImmuneFi's involvement in assisting Polygon's (MATIC) recent $3.47 million pay to two whitehat hackers for their instrumental role in preventing a "critical" susceptibility in the network's proof-of-stake Genesis contract, which put nearly the entire $10 billion MATIC token supply at threat, was quoted by Amador.
ImmuneFi awarded the largest bounty in DeFi history to renowned white hat programmer Alexander Schlindwein in September last year for preventing a major $10-million bug crisis in the automated market maker, or AMM, protocol Belt Finance.
Schlindwein got a total of $1.05 million in reimbursement, with $1 million receiving from Belt Finance with ImmuneFi acting as an intermediary and $50,000 originating from Binance Smart Chain's Priority One program.
ImmuneFi raised $5.5 million in October from a group of institutional investors, including Blueprint Forest and Electric Capital, intending to increase its security facilities across the DeFi industry in a coordinated attempt to reduce the pervasiveness and economic effect of beneficent security exploits.