The prominent bug bounty platform in Web3, ImmuneFi, has published a report delineating the primary causes of crypto exploits in the current landscape.
“Infrastructure is king. 46.5% of all hacks in 2022 in monetary terms occurred via infrastructure,” the statement noted.
Infrastructure Faults The Cause Of Crypto Exploits
In the recent report, ImmuneFi outlines that the infrastructure issues leading to crypto exploits are mainly around “poor private key handling.”
“Developers and researchers generally focus on designing and coding the smart contract protocol, which forms the core of web3 projects, but all too often the danger lurks one level below. It comes as no surprise that infrastructure in particular is the major difference between DeFi and CeFi projects.”
Furthermore, the failures in the infrastructure are narrowed down to three specific issues:
The first is when there is failure in the design or logic of the smart contract. Therefore, the project outlined on paper “behaves improperly.”
On the other hand, poor coding and implementation of the contract are the other reason for a significant amount of crypto exploits in recent times.
Learn more: What Is a Rug Pull? A Guide to the Web3 Scam
Immunefi maintains an extensive community of whitehat hackers. These consistently examine the blockchain and smart contract code of projects, identifying and responsibly disclosing vulnerabilities.
ImmuneFi Rewards Hackers For Discovering Vulnerabilities
Immunefi incentivizes whitehat hackers by rewarding them according to the severity of the vulnerabilities they uncover.
This strategy aims to encourage a broad array of experts to thoroughly examine project code for potential weaknesses.
ImmuneFi recently disclosed that the majority of stolen cryptocurrency funds in Q3 2023 resulted from two breaches.
Despite the 49 reported hacks during the quarter, these two incidents stood out due to the significant amounts pilfered in each occurrence.
A breach on September 26 led to the theft of $200 million in digital tokens from the Mixin Network. Additionally, on July 7, Multichain experienced a hack that compromised $126 million in assets.
Learn more: 15 Most Common Crypto Scams To Look Out For
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