This will be a record year for crypto hackers, over $3 billion already looted
(Kitco News) With crypto-hacking headlines now appearing regularly in the mainstream media, this year looks set to be another record year for hackers, according to a report from Chainalysis.
To date, hackers have already managed to steal more than $3 billion across 125 different hacking attempts, the New York City-headquartered blockchain analytics firm said in a report released in mid-October.
October, which isn’t even over, was the best month for hackers in 2022, with $718 million stolen in eleven different hacks. Decentralized financial protocols (DeFi) were the main targets this year. This is a shift that began in 2020. DeFi protocols use software-based algorithms that allow users to trade, borrow or lend crypto without a central intermediary.
2/ At this rate, 2022 will likely surpass 2021 as the biggest hacking year ever. So far, hackers have raised over $3 billion in 125 hacks. pic.twitter.com/vgT3pz2iOu
— Chain Analysis (@chainanalysis) 12 October 2022
“Back in 2019, most of the hacks targeted centralized exchanges, and prioritizing security went a long way. Now, a large majority of targets are DeFi protocols, the report says. “Cross-chain bridges remain a prime target for hackers, with 3 bridges breached this month and nearly $600 million stolen, accounting for 82% of losses this month and 64% of losses for the full year.”
3/ Back in 2019, most hacks targeted centralized exchanges, and prioritizing security went a long way. Now a large majority of goals #DeFi protocols. pic.twitter.com/efSKCkhnm2
— Chain Analysis (@chainanalysis) 12 October 2022
In another report, Chainalysis estimated that North Korea-linked groups obtained $1 billion worth of crypto in various hacking attempts on DeFi protocols.
One of the biggest hacks from October involved Binance’s native blockchain, BNB Smart Chain (BSC), which was hit by a bridging exploit. The hack triggered a network suspension for a short period. Reports said a hacker exploited an issue with a cross-chain bridge and made off with an estimated $80 million in BNB tokens, the native currency of the chain.
Another major hack involved Solana-based decentralized finance protocol Mango Markets (MNGO). In this case, a hacker manipulated the price data of its original MNGO token and leveraged cryptocurrency loans under collateral. The attack managed to wipe out $100 million.
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