97 Percent of Crypto Hacks in 2022 Have Targetted DeFi Projects 4b6f4u Reveals Chainalysis Study

2022 has also been the biggest year for North Korean-d hacking groups. 7256p

By Shomik Sen Bhattacharjee | Updated: 16 May 2022 16:45 IST

97 Percent of Crypto Hacks in 2022 Have Targetted DeFi Projects, Reveals Chainalysis Study

Photo Credit: Chainalysis 1d1d4g

Chainalysis report says DeFi is responsible for 97 percent of crypto market hacks

Highlights

DeFi attacks have been getting worse with every ing year
Criminals have stolen $1.7 billion in digital assets in 2022
NFT wash trading s for a sizeable portion of illegal activity

ment

Illicit cryptocurrency transactions in the decentralised finance (DeFi) sector have been rising rapidly over the last two years, according to Chainalysis' recently published Web 3 Safety and Compliance report. Data gathered by the blockchain analytics firm shows that in 2022 so far, criminals have stolen $1.7 billion (roughly Rs. 13,210 crore) in digital assets, with DeFi protocols ing for 97 percent of the total. The $600 million (roughly Rs. 4,660 crore) Ronin bridge breach in late March and the $320 million (roughly Rs. 2,486 crore) Wormhole attack in February were the main sources of the loot.

According to the DeFi protocols has also expanded steadily in recent years, with DeFi protocols ing for 69 percent of crypto-based hauls related to illegal activity.

The paper talks about the difficulties of tracking the flow of digital assets to the design of most such protocols, which allow s to trade one token for another. The absence of KYC requirements in most DeFi schemes has also made them more appealing to criminals.

Cryptocurrencies, Why They Crashed and Their Future: An Explainer

The research referenced the example of the notorious Bitcoin, then transferred them to centralised exchange s and cashed out the funds.

The paper also talks about non-fungible token (NFT) wash trading — a market manipulation tactic that inflates an illiquid asset artificially. NFTs can be traded between wallets controlled by the same business, providing market players with the false impression that demand for the asset is stronger than it is.

According to Chainalysis, one case has created over 650,000 wETH (wrapped Ether) in transaction volume due to tampering. The events happened on the same platform, according to the report, since the marketplace offered incentive rewards for trading NFTs in the form of the platform's native coin.

Terra's LUNA Surges Over Weekend as Investors See Glimmer of Hope

By just transacting more frequently between s, s can earn extra tokens. Meanwhile, NFT collectors may be misled into believing that the marketplace is busier than it is.

How is Alexa faring in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

links may be automatically generated - see our ethics statement for details.

Comments

For the latest reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.