Crypto hacks: a sad forecast for 2022

Despite the bear market, the crypto asset industry remains one of the favorite targets of black hat hackers.

To believe CoinMarketCapThe market capitalization of the crypto market was about $934.85 billion at the end of the third quarter of 2022, down 43.56% from the first quarter of the same year and more than 60% from the $3,000 billion recorded in November 2021.

In addition to classic techniques such as phishing, black hat hackers (pirates with black hats) use highly sophisticated methods to attack DeFi platforms and blockchain bridge. Unlike ethical (white hat) hackers who generally have good intentions, black hat hackers are malicious. The term “black hat” comes from the gangster movies of the 1950s, where criminals wore black hats.

According to immunityover 168 carpet pulls and crypto hacks (including cases of fraud and hacking attempts) were reported last year. According to the platform, the ecosystem Web3 lost $3.9 billion in 2022. Most of that amount ($3.7 billion) was stolen in 134 crypto hacks. The remaining amount ($175 million) lost in 34 incidents.

DeFi remains the weak link

As in previous years, DeFi remained a prime target for black hat hackers. Last year, hacks cost DeFi platforms $3.1 billion, which is a 56.2% increase from the $2.4 billion lost in 2021. According to a report data collector Token Terminalcross-chain bridges fall victim to 50% of crypto hacks.

On the other hand, centralized platforms (CeFi) seem to be spared from hackers. In 2022, they suffered only 13 hacks for a total of $769 million, which represents an 87.3% decrease compared to the $6 billion stolen in 2021.

BNB and Ethereum chain: fertile ground for hacks

According to the same source, 63.3% of on-chain attacks were carried out on BNB Chain and Ethereum, making them the two blockchains most targeted by hackers in 2022.

Indeed, 36.1% of attacks were carried out on the BNB Chain, which represents an increase of 51.2% compared to 2021. Ethereum, on the other hand, suffered 49 incidents. (compared to 45 in 2021)representing 27.2% of the total number of blockchain hacks. Solana came third with a total of 12 attacks. It is followed closely avalanchePolygon and NEAR and Polkadot who suffered only one attack.

According to research by Immunefi, “other blockchains such as Gnosis, Cronos, Arbitration, ghost together they accounted for 21.7% of the total blockchain attacks.

A difficult fourth quarter for the crypto market

Since November, the FTX case dominates all discussions in the crypto sphere. In the early hours of November 12, the crypto exchange lost several million dollars in a hack, the author of which is none other than Sam Bankman-Fried. A few days ago, FTX filed for Chapter 11 bankruptcy in the US.

In the fourth quarter, DeFi platforms suffered 55 crypto hacks, which cost them a total of $1.2 billion, representing 41% of annual losses. Most of the losses came from FTX and BNB Chain.

Source: CoinGecko

Other decentralized platforms were attacked in the first quarter, including Ronin Network and Wormhole, which lost $625 million and $326 million, respectively. Note further that nearly $400 million in funds stolen from the Ronin Network came from gambling. Axie Infinity.

Other crypto hacks that made headlines include Nomad ($190 million), BNB Chain ($570 million), and FTX which lost $650 million, or 60% of its total Q4 losses.

Part of the funds was recovered

Of the $3.9 billion stolen by the hackers, about $204 million was recovered, according to the report. However, this represents only 5.2% of the total 2022 losses.

For example, Multichain, a DeFi protocol attacked in January by a hacker anonymous, was able to convince his captor to return 50% of the stolen funds. By the end of the year, Multichain users had recovered $2.6 million of the $3 million stolen.

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