Flash Loan Attacks Caused $1.21 Billion in DeFi Losses Through July 2024
The attacks made up 72 of 254 successful incidents across seven blockchains during the study period, which began in February 2020.
Flash loan attacks caused $1.211 billion in decentralized finance losses from February 2020 through July 2024, making up 72 of 254 successful attacks recorded across seven blockchains during the period.
The 254 incidents caused $6.568 billion in total losses. Flash loan attacks were one part of those broader DeFi security failures.
Flash loans let users borrow cryptocurrency without collateral, as long as they repay it within the same blockchain transaction. Attackers can use flash loans to distort prices or take advantage of weaknesses in DeFi protocols, although the loans also have legitimate uses.
The study, “Flash in the Pan?: Analyzing Flash Loan Attacks on the DeFi Ecosystem,” classified 14 types of flash loan attack. The researchers examined blockchain transactions, public discussion of the incidents and an interview with an affected platform.
The findings cover attacks through July 2024; they do not establish losses after that date.
Simon Yoon
ReporterSimon Yoon reports on blockchain technology for TokenPost. Send corrections or tips to info@tokenpost.com.