Crypto hackers have been making off with billions of dollars from the market every year. These hackers who find vulnerabilities in the products being used by investors have been known to cart away hundreds of millions at a time. 2022 has proven to be no different from these hackers who have ramped up their efforts. In just the first quarter of the year alone, the exploits by these hackers have seen more than a billion dollars lost in the space.
Hackers Make $1.22 Billion In Crypto
In a recent report from Immunefi, it is noted that hackers have made more than $1 billion in just the first quarter. These have mostly been from DeFi attacks which seem to be a favorite for these hackers. In total, there have been $1.22 billion dollars lost to these exploits alone. This number shows that the hackers have been stealing money at an accelerated rate compared to that of 2021, which only recorded $154 million stolen by hackers in the first quarter of the year.
These attackers have been focusing on software exploits that have led to millions of dollars lost at a time. Immunefi notes that hacks against Wormhole and Ronin have been the most prominent of these software attacks and according to the firm, this may only be beginning.
With each hack or exploit, it seems the hackers have devised more sophisticated ways to steal money. Mostly, these attackers have focused on the young decentralized finance (DeFi) space which is still very much uncharted territory and as such has become a playground for these hackers.
Total market cap touches above $2 trillion | Source: Crypto Total Market Cap on TradingView.com
Mitchell Amador, Founder and CEO of Immunefi, explained that with the growth of the DeFi space, the hackers stand to make more from their attacks as it will get more and more lucrative for them to do so. “We should expect these types of [sophisticated] attacks to continue to increase, as more and more criminal organizations build DeFi-hacking skills in-house,” the CEO said.
Why Hacks Are Prominent
The reason hacks are so prominent in the space has been the fact that security is still a big issue in the DeFi space. Given that it is still very early, there is still a big gap in the ways that users can be protected in this industry.
Additionally, there is also the fact that the space is still highly unregulated. Coupled with the fact that launching a DeFi product is becoming easier by the day, there is less attention paid to security thereby compromising the funds of the users.
Recently, Ronin Network, the developers behind Axie Infinity, was exploited for $615 million in what is said to be one of the largest hacks in the history of the space.
Featured image from CryptoSlate, chart from TradingView.com