A research report claims that $1.3 billion worth of digital currency was stolen in the first quarter 2022. Researchers at cryptomonday.de have published a study that further highlights the fact that 97% were stolen from decentralized financial (defi), protocol exploits.
Defi Exploits Account for Lion’s Share of Stolen Crypto This Year
Hacks and exploits are already breaking new records with 2022 in the theft of cryptocurrencies. Last year, $3.2 billion in digital currencies were stolen and so far, 2022 has recorded over 40% of 2021’s aggregate during the first quarter alone. The recorded stolen crypto data stems from a report published by cryptomonday.de and the study’s author, Elizabeth Kerr. The report’s author says “the numbers signify a major spike.”
97% of the digital currencies that were stolen from this year’s $1.3 Billion in thefts, for instance, came from defi protocols. The defi protocol accounted for only 72% and 30% of all the funds stolen in the first quarter 2021. There was also a lot of theft from 2022 due to faulty code exploits, where smart contract mistakes were used in order to siphon off stolen funds from the defi protocol. The author says that because the defi environment is open source, anyone can search for vulnerabilities and errors within a defi project’s codebase.
The use of centralized exchange hacks drops significantly
Research further reveals that while centralized platforms were popular honeypots in the past, there has been a decline in attacks against these trading platforms. “[Centralized exchange attacks]Only 15% now make up the remainder of the [stolen] cryptos,” Kerr writes. Kerr also points out that flash loan attacks, security breaches and common defi protocol hackers were all part of the report. The report’s author further mentions the Ronin bridge attack, which saw a loss of over $600 million.
“Hackers and cyber criminals made away with more than $3.2 billion last year and we just might have a higher amount being stolen this year, if the first quarter is anything to go by. The need for tighter security measures grows by the day, especially since more people are coming aboard,” Jonathan Merry, CEO at Cryptomonday explained in a statement.
What do you think about the study that shows most of 2022’s stolen crypto assets stemmed from defi protocol exploits? Please comment below to let us know your thoughts on this topic.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.