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

Anna Golubova

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. 

By Anna Golubova

For Kitco News

Contact agolubova@kitco.com
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