• Chainalysis blockchain analytics firm says that 2022 was the biggest year ever for crypto hacking, with $3.8 billion stolen from cryptocurrency businesses.
• Of this amount, 82.1% of all cryptocurrency stolen by hackers came from decentralized finance (defi) protocol hacks.
• North Korea-linked hackers have been the most prolific cryptocurrency hackers over the last few years and they stole an estimated $1.7 billion worth of cryptocurrency across several hacks in 2022.
Crypto Hacking Hit Record High in 2022
Chainalysis blockchain analytics firm published a section of its upcoming 2023 Crypto Crime Report on Wednesday, stating: 2022 was the biggest year ever for crypto hacking, with $3.8 billion stolen from cryptocurrency businesses. The firm explained that crypto hacking activity significantly increased in March and peaked in October — the month which „became the biggest single month ever for cryptocurrency hacking, as $775.7 million was stolen in 32 separate attacks,“ Chainalysis described.
Defi Protocols Most Affected by Crypto Hacking
Chainalysis added that „82.1% of all cryptocurrency stolen by hackers — a total of $3.1 billion“ came from decentralized finance (defi) hacks. Noting that this percentage was up from 73.3% in 2021, the firm pointed out that $3.1 billion of 64% came from cross-chain bridge protocols specifically.
North Korea-Linked Hackers Highly Prolific
Chainalysis also detailed that „North Korea-linked hackers … have been by far the most prolific cryptocurrency hackers over the last few years,“ elaborating: In 2022, they shattered their own records for theft, stealing an estimated $1.7 billion worth of cryptocurrency across several hacks we’ve attributed to them.. Moreover, North Korea-linked hackers stole $1.1 billion of that amount from defi protocols, making North Korea „one of the driving forces behind the defi hacking trend that intensified in 2022.“ Besides defi protocols, Chainalysis noted that „North Korea-linked hackers also tend to send large sums to mixers, which have typically been the cornerstone of their money laundering process.“ The firm further detailed that „For much of 2021 and 2022, North Korea-linked hackers almost exclusively used Tornado Cash to launder cryptocurrency stolen in hacks.“ Ethereum mixer Tornado Cash was sanctioned by the U.S government in August last year..
Cryptocurrency Businesses Need More Security Measures
Chainalysis’s report indicates a need for more security measures and better protection when it comes to dealing with cryptocurrencies and other digital assets on exchanges or wallets as these are prime targets for malicious actors looking to steal funds or data illegally on those platforms .The increasing number of cyberattacks targeting crypto firms has highlighted how vulnerable these platforms can be if proper security measures are not taken into consideration when handling digital currencies or assets online .
Conclusion
Hackers have become increasingly sophisticated when it comes to stealing funds through various means such as exploiting weak security systems or methods used by organizations while dealing with digital currencies or assets online . It is therefore important for companies offering services related to cryptocurrencies need to take extra precautions when it comes to securing their systems against potential threats posed by malicious actors online .