Bad actors are almost synonymous with the crypto space today due to the almost daily number of scams and hacks. So far in 2022, these bad actors have risen to the top, breaking records set in previous years. With $3 billion already stolen in 2022, they’ve had a very “productive” year.
Billions Of Dollars Moved Through Crypto Hacks
A Forbes report details the hacks of 2022 and how much these attackers were able to steal in that year alone. Citing a report by Chainalysis, he explains that hackers stole $3 billion from 125 hacks over the course of the year. Most of these were due to DeFi (Decentralized Finance) attacks alone. While the crypto industry is still relatively young, the DeFi space is even younger, only coming to the fore about a year ago. This means that the security logs have not been fully calculated. still leave room for attackers to exploit them for personal gain.
This is not supported by the fact that these DeFi protocols are being released in rapid succession without proper testing for security measures.
The report describes the platforms that lost the most to these attacks. An alarming fact was that $1.48 billion was lost in just five attacks per year. These include the Ronin Network, which lost $625 million blaming North Korean hackers. .Then Wormhole Network lost a whopping $325 million.
Another $190 million was stolen when the Nomad Bridge, the third largest of the year, exploded a few months ago. Fourth and fifth place went to Beanstalk Farms, which was hijacked for $182 million, and the Wintermute hack, where attackers broke through to $160 million. Together, these five vulnerabilities accounted for nearly half of all funds lost to attacks this year.
Binance also saw its own fair share of action when a bridge connecting BSC and the Beacon Chain exploded. The hacker reportedly got away with more than $500 million initially, but the exchange was able to recover some of the funds, leaving around $110 million lost in the hack. However, the centralized exchange itself was not violated. In terms of centralized exchanges that have been breached, Crypto.com ranks first with its $35 million hack recorded at the beginning of
FTX’s turn was about 11 months later when more than $370 million in unauthorized transactions were stolen from the exchange. The US Department of Justice is reportedly currently investigating the FTX hack. Fortunately, these were the only hacks for the year for centralized exchanges, which hold significantly more cryptocurrencies than their decentralized counterparts.
With the FTX hack, the amount stolen surpassed last year’s figure of $327 million. This is the fourth highest value after 2014, 2016 and 2018.