Hackers have become adept at finding and taking advantage of weaknesses in the coding, security, and structural integrity of so-called decentralized finance marketplaces.
Crypto hackers are expecting a record-breaking year after stealing over $3 Billion. Hackers have become adept at finding and taking advantage of weaknesses in the coding, security, and structural integrity of so-called decentralized finance marketplaces.
Despite their crash this year, cryptocurrencies continue to be a digital cash cow for one influential group: hackers.
According to a blockchain expert, at least $718 million has been stolen so far in just October, pushing the total for the year beyond $3 billion and putting 2022 on track to set a record for the total value of hacks.
The majority of the targets are what are known as “decentralized finance,” or DeFi, protocols, which use software-based algorithms to let cryptocurrency investors trade, borrow, and lend on digital ledgers without the use of a central intermediary.
Hackers have been good at finding and taking advantage of weaknesses in the coding, security, and organization of DeFi marketplaces. Given that DeFi is regarded as crucial for the adoption of cryptocurrencies, this puts the onus on crypto players to provide solutions.
According to an expert tweet, “October is now the greatest month” for hacking activity, and it also noted that bridges connecting blockchains are a significant weakness.
The crypto industry has just been shaken up by two significant exploits. One involved a hacker who stole around $100 million from the DeFi service Mango by influencing the token’s price. The criminal destroyed all of the platform’s depositors in the process.
2 million Binance Coins, worth roughly $570 million, were effectively created and taken by a hacker last week. A statement from Binance claims that the remaining money was blocked and that just about $100 million was not recovered.
DeFi platforms are increasingly being hacked by governments. An expert predicted earlier this year that organizations connected to North Korea had taken almost $1 billion in cryptocurrency from DeFi protocols.