FTX collapse leads Q4 2022 losses as hacks wipe out $3.7 billion from the crypto market
- FTX and BNB Chain were responsible for about 75.3% of all losses noted between October to December 2022.
- Immunefi reported that of the overall $3.9 billion losses in 2022, $3.7 billion were lost due to hacks alone.
- FTT price established another all-time low as the impact of the bankruptcy proceedings failed to initiate any recovery.
FTX not only brought unimaginable losses this year but also led the market in the same category. However, according to the report from Immunefi, most of the losses were not even born out of FTX but still led the crypto space.
FTX led Q4 losses
FTX collapsed in November, triggering one of the biggest crashes noted in the crypto market since its inception. But according to the latest report from Immunefi, about $1.2 billion worth of losses came from FTX and BNB chain alone, representing more than 75% of the Q4 losses.
Overall in the last 12 months, the market seems to have seen a lot resulting in total losses worth $3.9 billion. The leading cause of these losses, although seems to be hacks. Hacks accounted for about 92.6% of the $3.9 billion, leading to losses amounting to $3.7 billion.
Furthermore, among all the cryptocurrency blockchains, the BNB Chain and Ethereum were the primarily targeted chain. More than half of the blockchain attacks were focused on these chains, as the BNB chain suffered 18 incidents while Ethereum witnessed 14 incidents. Combined, they suffered 64% of all blockchain attacks in 2022.
Commenting on the growth in losses, the CEO of Immunefi Mitchell Amador was noted saying,
“2022 is a reminder of the importance of prioritizing security and implementing robust and consistent measures moving into 2023. By proactively identifying and addressing vulnerabilities, we can protect the community from harm and build trust in the field. As we make the industry safer, everything else can flourish.”
FTT price dips farther below
FTT price fell below the $1 mark once again as the cryptocurrency slipped to trade at $0.916. Despite a 12% rise 48 hours ago, the altcoin remained on a downfall inching closer to its all-time low of $0.834.
FTT/USD 4-hour chart
This is because, despite the positive developments in the FTX case, the price remains unchanged. As reported by FXStreet, FTX’s US arm and the Liquidators signed a cooperation agreement to smooth the bankruptcy proceedings, but FTT price remained unchanged still.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
