Despite their fall this year, cryptocurrencies continue to be a digital cash cow for one influential group: hackers.
2/ At this rate, 2022 will likely surpass 2021 as the biggest year for hacking on record. So far, hackers have grossed over $3 billion dollars across 125 hacks. pic.twitter.com/vgT3pz2iOu
— Chainalysis (@chainalysis) October 12, 2022
According to blockchain analysis network Chainalysis Inc., at least $718 million has been stolen so far in only October, pushing the total for the year beyond $3 billion and putting 2022 on track to set a record for the total amount of hacks.
Who Is Being Targeted the Most?
Most of these targets are “decentralized finance” (DeFi) protocols, which allow cryptocurrency investors to trade, borrow, and lend without a central intermediary.
3/ Back in 2019, most hacks targeted centralized exchanges, and prioritizing security went a long way. Now a vast majority of targets are #DeFi protocols. pic.twitter.com/efSKCkhnm2
— Chainalysis (@chainalysis) October 12, 2022
In DeFi markets, hackers have taken advantage of code, security, and organization loopholes. To adopt cryptocurrencies, crypto players must provide solutions for DeFi, which puts the onus on them.
1/ Eastern Europe is the fifth-largest #crypto market we studied in this year’s Geography of Cryptocurrency Report.
In this 🧵we cover key trends in the region.
Read the blog to get a full overview! https://t.co/E5BOeZT6IT
— Chainalysis (@chainalysis) October 12, 2022
According to Chainalysis’ tweet on Thursday, “October is now the greatest month” for hacking activity in 2022, and it also noted that bridges connecting blockchains are a significant weakness.
Two significant exploits have just shaken up the crypto industry. In one attack, a hacker manipulated the token’s price for the DeFi service Mango and stole approximately $100 million. The criminal destroyed all of the platform’s depositors in the process.
4/ Cross-chain bridges remain a major 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 all year. pic.twitter.com/lQySX2ljKt
— Chainalysis (@chainalysis) October 12, 2022
A hacker created and seized approximately $570 million worth of BNB Tokens last week. A statement from Binance claims that the remaining money was blocked and that just around $100 million was not retrieved.
In early this year, Chainalysis predicted that North Korean organizations had stolen almost $1 billion in cryptocurrency through DeFi protocols.
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