Web3 projects have lost more than $2 billion to hacks this year

Illustration by Alex Castro / The Verge

In the first six months of 2022, Web3 projects have lost more than $2 billion to hacks and exploits — more than all of 2021 combined.

That’s according to research from blockchain auditing and security company CertiK, which on Thursday released its quarterly Web3 security report covering Q2 of this year. The report paints a sobering picture of a cryptocurrency space still plagued by hacks, scams, and phishing schemes while also facing relatively new threats like flash loan attacks.

CertiK puts particular focus on this last category of threat, which has been created by the invention of flash loans: a decentralized finance mechanism that lets borrowers access extremely large amounts of cryptocurrency for very short periods of time. If used…

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