Cryptocurrencies are slowly gaining traction around the world as a noteworthy investment avenue. As an adverse effect of the growing popularity, crypto hacks have also seen an uptick in recent months. As per New York City-headquartered blockchain analysis firm Chainalysis, October has now become the “biggest month” and 2022 is the “biggest year ever” for hacking attacks.
In a Twitter thread on October 13, Chainalysis noted that bad actors have already stolen $718 million from DeFi protocols via 11 separate hacks so far in October. In 2022, the highest number of hacks was seen in the month of March, with over 15 instances. So far this year, hackers have grossed over $3 billion across 125 hacks.
Chainalysis claimed that if the current trends continue 2022 is expected to surpass 2021 as the biggest year for hacking ever (on record). While hackers are mostly targeting DeFi protocols now, centralised platforms saw the most hacks back in 2019. A heavy focus on security and layer protection helped resolve that.
The analysis firm went on to note that cross-chain bridges remain a “major target for hackers”, especially since three bridges were breached in October so far, resulting in a loss of nearly $600 million. Notably, October’s bridge attacks accounted for 82 percent of all losses in the month, and 64 percent of all losses in 2022.
The overall crypto market has been facing an unprecedented slump this year, owing to the ongoing Russia-Ukraine war and other global macroeconomic factors such as the recent US Fed rate hikes.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.
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