Crypto Hacking Set To Post A Record In 2022, More Than $3 Billion Crypto Assets Already Stolen

Crypto Hacking Set To Post A Record In 2022, More Than $3 Billion Crypto Assets Already Stolen

Despite their crash in 2022, cryptocurrencies are a digital cash cow for one influential group: hackers.

According to blockchain expert Chainalysis Inc., at least $718 million worth of crypto assets has been hacked and taken away so far in just a month of October this year, pushing the total crypto hacking price for 2022 to more than $3 billion and pitting the year to be on track to become a record year in terms of the total value of hacks.

Most targets are the so-called decentralized finance protocols, or DeFi, which use software-based algorithms to let cryptocurrency investors trade, borrow, and lend on digital ledgers without using a central intermediary.

Hackers are skilled at finding flaws in the coding, security, and structure of DeFi marketplaces. 

DeFi is crucial for adopting

cryptocurrencies, which burdens crypto players to discover alternatives.

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According to Chainalysis on Twitter, “October is now the biggest month” concerning successful crypto hacking in 2022. It also noted that bridges between blockchains are a significant vulnerability.

Two significant exploits have recently shaken up the crypto industry. One involved a hacker who stole about $100 million from the DeFi service Mango by influencing the token’s price. The perpetrator destroyed all of the platform’s depositors in the process.

Two million Binance Coins, worth roughly $570 million, were effectively created and taken by a hacker last week. A statement from Binance claims that the remaining money was frozen and that only about $100 million was not recovered.

Governments are increasingly hacking DeFi platforms. Chainalysis predicted earlier this year that organizations connected to North Korea had taken about $1 billion in cryptocurrency from DeFi protocols.

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