• Crypto hacks have cost the world over $30 billion.
• DeFi protocols are the biggest targets for hacking, with $3.1 billion stolen last year.
• Cross-chain bridges are the biggest specific targets within DeFi, representing 64% of that $3.1 billion total.
Crypto Hacks Cost Over $30 Billion
The blockchain security firm SlowMist recently reported that losses from crypto hacks have now surpassed $30 billion across 1,101 different exploits since January 2012. This figure serves as a stark reminder of how important it is to prioritize security when dealing with blockchain technology.
DeFi Protocols Targeted by Hackers
According to market intelligence firm Chainalysis, DeFi protocols are the top target for hackers in the crypto space, accounting for more than 82% of funds stolen in 2022 alone – totaling around $3.1 billion. Of this amount, cross-chain bridges make up 64%.
Recent Crypto Exploits
This week has seen two separate crypto projects exploited for significant sums: A hacker used forged proofs to launch withdrawal operations on cross-chain bridge contracts on Poly Network and made a profit of approximately $5.3 million worth of Ethereum (ETH). On Thursday, another hacker exploited Multichain and withdrew around $126 million worth of tokens from the bridge on Fantom (FTM).
Security Issues Need Attention
SlowMist noted in light of these numbers that “it’s abundantly clear that projects and users alike need to place a much higher emphasis on security within the realm of blockchain technology” if they want to protect their assets from theft or exploitation.
Chainalysis’ report also highlighted other areas where hackers have been successful such as phishing scams which accounted for 8% ($240 million) of all crypto funds lost last year; SIM swapping attacks (4%, or roughly 120 million); and malware attacks (6%, or about 180 million).