Following the launch of Layer-2 solution Base by Coinbase, four security incidents occurred.Throughout the month of August, hacks and exploits cost cryptocurrency users a total of $15.8 million.
A recent report from blockchain security company Immunfi states that a total of $23.4 million in cryptocurrency was lost due to hacking and fraud, which is a considerable drop from the $320.5 million lost in July. Decentralised finance (DeFi) protocols were the target of every exploit, while centralised financial institutions were not impacted by any of the incidents.
Five of the 21 reported security problems happened on the Ethereum blockchain, while four happened on the BNB Chain. Four security flaws were discovered shortly after Base, Coinbase’s eagerly awaited layer-2 solution, went live on August 9. Top losses include the 4,323.6 Ether lost in the Exactly Protocol breach on August 18th. Through the implementation of a fraudulent deposit contract, consumers’ deposits worth ($7.2 million) were taken.
Meanwhile, on August 25, Magnate Finance, a borrowing and lending protocol set up on Base, allegedly carried out a $6.5 million exit fraud after well-known DeFi detective zachXBT asserted the deployer address for Magnate Finance was connected to the departure fraud.
The protocol’s smart contract has now been empty of any assets, and its website and social media accounts are also inactive. According to Immunefi data, users have lost $1.25 billion in cryptocurrency so far this year as a result of hacking and fraudulent activities. A malicious flash loan assault cost DeFi protocol Euler Finance $195 million in March. Less than a month later, after developers were faced with legal action, the Euler hacker returned more than 90% of consumers’ assets.