$1.9 Billion Stolen in Crypto Hacks so far This Year

Dejan Cvetnarevic
Dejan Cvetnarevic

Updated · Aug 23, 2022

SHARE:

Techjury is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more.

There has been a 60% increase in the amount of cryptocurrency stolen from the same period in 2021.

Hacks on the Rise

A report from blockchain analysis firm Chainalysis reveals hackers have stolen a staggering $1.9 billion worth of crypto in the first seven months of 2022. This marks a huge increase from the year prior.

The surge comes even though the value of many cryptocurrencies has plunged significantly since the start of the year. The report attributes much of the spike to hacker attacks on decentralized finance (DeFi) protocols.

Chainalysis also warns that the increase of crypto attacks shows no sign of letting up. "As long as crypto assets held in DeFi protocol pools and other services have value and are vulnerable, bad actors will try to steal them," the report says.

DeFi protocols are highly vulnerable to hacking due to their open source code, large pools of assets, and rapid growth that may have caused a lapse in security practices.

Some of the biggest hacks targeted DeFi protocols, including the $625 million attack on Axie Infinity's Ronin earlier in March. Like some other hacks, the Axie Infinity incident has been attributed to North Korean hackers. Some reports suggest the thefts are a part of the country’s strategy to bring in revenue for its regime.

Other Attacks

Just a day before Chainalysis posted the report, Acala saw hackers mint 1.28 billion tokens from thin air resulting in its stablecoin plunging 99%. The network has since dealt with the problem, and aUSD is close to restoring its $1 pegging.

Stablecoin protocol Beanstalk lost over $180 million in April after internet wrongdoers exploited its system. Hackers previously stole over $320 million worth of crypto from blockchain platform Wormhole.

SHARE:

Dejan Cvetnarevic

Dejan Cvetnarevic

Dejan is a techie at heart who always dreamed of turning his fascination with gaming into a career. He finds working for TechJury a perfect opportunity to express his views of all kinds of different software. Being an avid reader, particularly of fantasy and sci-fi, Dejan pursued a degree in English Language and Literature. When not at his computer, he’s watching sports or playing tabletop games.

Leave your comment

Your email address will not be published.