Make Kitco Your Homepage

This will be record year for crypto hackers, over $3 billion already looted

Kitco News

(Kitco News) With crypto hacking headlines now making regular appearances in mainstream media, this year is looking to be a new record year for hackers, according to a report by Chainalysis.

Year-to-date, hackers have already managed to steal more than $3 billion across 125 different hacking attempts, the blockchain analysis firm headquartered in New York City said in a report released mid-October.

October, which is not even over, was the best month for hackers in 2022, with $718 million stolen in eleven different hacks. Decentralized finance 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.

“Back in 2019, most hacks targeted centralized exchanges, and prioritizing security went a long way. Now a vast majority of targets are DeFi protocols,” the report said. “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.”

In another report, Chainalysis estimated that North Korea-affiliated groups got their hands o $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 with a bridge exploit. The hack triggered a network suspension for a brief period. Reports said that a hacker took advantage of an issue with a cross-chain bridge, escaping with an estimated $80 million in BNB tokens, the native currency of the chain. 

Another big hack involved Solana-based decentralized finance protocol Mango Markets (MNGO). In this instance, a hacker manipulated the price data of its native MNGO token and exploited under-collateralized cryptocurrency loans. The attack managed to wipe out $100 million. 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.