In terms of stolen cryptocurrency from hacks and exploits, the year 2022 is already shattering records. Last year, $3.2 billion in virtual currencies were stolen, with 2022 accounting for more than 40% of 2021’s total in the first quarter alone.
The stolen crypto data was discovered thanks to a tip by cryptomonday.de and the study’s author, Elizabeth Kerr. “The data suggest a huge surge,” as stated by the author.
For example, DeFi protocols were used to steal 97 percent of the $1.3 billion in digital currency stolen this year.
Only 72 percent of stolen funds came via DeFi in Q1 2021, while only 30 percent came from DeFi in 2020.
Furthermore, the majority of the theft in 2022 resulted from faulty code exploits in which smart contract faults were exploited to steal money from DeFi protocols.
Owing to DeFi platform being open source, anybody can search for vulnerabilities and flaws within a DeFi project’s coding, according to the author.
In earlier years, centralised markets were common honeypots, but attacks on centralized payment systems have decreased, according to the study. Kerr writes, “[Centralized exchange hacks] currently account for far less than 15% of the [stolen] crypto currencies.”
Flash loan cyberattacks and data breaches were also prevalent DeFi protocol hacks, according to the report.
The Ronin bridge attack, which resulted in a loss of approximately $600 million, is also mentioned by the report’s author.
Last year, spammers and cyber thieves stole more than $3.2 billion, and if the first quarter is any indication, the sum stolen this year will be even greater. In a statement, Jonathan Merry, CEO of Cryptomonday, said, “The demand for tougher security protocols grows with each day, particularly as more people come aboard.”
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