The Web3 sector reached an unfortunate milestone recently, though it's not exactly unfamiliar territory. As of September 4, 2023, the industry crossed the $1 billion mark in terms of value lost to exit scams, exploits, and hacks.
CertiK analysts have been closely monitoring a scammer known as "Faint" since late 2022. This individual has been linked to numerous Discord compromises and phishing activities on both Ethereum and Solana.
Between October 2020 and March 2023 there have been 25 exploits of Web3 projects where the impacted projects were later able to recover some or all of the funds lost. How did they recover nearly a billion dollars?
The past year has been a painful one for many in crypto. Malicious actors drained over $3.7 billion worth of assets from Web3 protocols in 2022, representing a 189% increase over the $1.3 billion lost in 2021.