Blockchain analytics firm Chainalysis says 2022 was “the biggest year for cryptocurrency hacking,” with $3.8 billion stolen from cryptocurrency businesses. The firm added that decentralized finance (defi) protocol hacks accounted for 82.1% of all cryptocurrencies stolen by hackers during the year.
Crypto Hacking Hits a Record in 2022
Blockchain analytics firm Chainalysis 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 cryptocurrency hacking activity increased significantly in March and peaked in October, the month that “became the biggest month ever for cryptocurrency hacks, as $775.7 was stolen.” million in 32 separate attacks,” Chainalysis described.
The firm added that “82.1% of all cryptocurrencies stolen by hackers, a total of $3.1 billion” came from decentralized finance (defi) hacks. Noting that this percentage increased from 73.3% in 2021, the company noted that $3.1bn of 64% came specifically from cross-chain bridging protocols.
Chainalysis also detailed that “North Korea-linked hackers…have been by far the most prolific cryptocurrency hackers in recent years,” explaining:
In 2022, they broke their own theft records, stealing an estimated $1.7 billion worth of cryptocurrency through various attacks that we have attributed to them.
Additionally, the blockchain analytics firm stated that North Korea-linked hackers stole $1.1 billion of that amount from defi protocols, making North Korea “one of the driving forces behind the trend of defi hacking that intensified in 2022″. In addition to defi protocols, Chainalysis noted that “North Korea-linked hackers also tend to send large sums of money to blenders, which have typically been a 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.” The Ethereum mixer Tornado Cash was sanctioned by the US government in August of last year.
What do you think about the hackers who stole $3.8 billion from cryptocurrency companies last year? Let us know in the comments section.
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