Hey Peeps!
Image from Chainalysis blog
On February 1st, blockchain data platform, Chainalysis, published a part of their 2023 Crypto Crime Report that highlighted Hacking.
A reported $3.8 billion worth of crypto was stolen from the cryptocurrency industry during the year of 2022.
The report states that DeFi protocols were the largest victim of these hacks, and they were primarily perpetrated by North Korean-linked groups.
DeFi protocols had a total of $3.1 billion worth of cryptocurrency stolen by hackers, which equals about 82.1% of all crypto stolen in 2022/
Of the $3.1 billion stolen from DeFi protocols, approximately 64% came from cross-chain bridge protocols; clearly the biggest targets of hackers at the moment.
Image from Chainalysis blog
Supposedly, not a single DeFi protocol audited by blockchain cybersecurity firm, Halborn, has subsequently been hacked.
Chainalysis spoke with the COO of Halborn, David Schwed, and asked for guidance on how to improve DeFi security; these were his suggestions:
- Consistently testing DeFi protocols with simulated hacking scenarios.
- Monitor the mempool for suspicious activity before they are confirmed on the blockchain to detect attacks at the earliest stage.
- Implement automated processes to pause protocols and transactions if any suspicious activity is detected.
"The DeFi community generally isn’t demanding better security, they want to go to protocols with high yields. But those incentives lead to trouble down the road."
- David Schwed, Halborn COO
Halborn COO David Schwed definitely has a point, as most crypto investors are looking for high yields and normally are less concerned with the riskiness of the website.
Image from Chainalysis blog
The reports ends with a large focus on North Korean-linked hacking groups, who stole about
2022 was a shockingly profitable year for North Korean-linked hackers as went from a total of $428.8 million in 2021 to an insane $1.7 billion.
Chainalysis' report shows that during 2021 and 2022, the North Korean-linked hackers used Tornado Cash primarily to launder the cryptocurrency they had stolen.
Do you think we will see the amount of hacks continue to increase, or will we see a change?
If you have made it this far and enjoyed the post, please consider hitting the Thumbs Up 👍 and Follow buttons!
If you want to be even more awesome, please Tip before you go!
And while you're at it, Enter my Monthly Giveaway on Publish0x to win yourself some free Crypto!
It takes 5 seconds to enter!
See ya!
:)
