Report: $1.3 Billion in Crypto Stolen in Q1 2022, 97% Stemmed From Defi Exploits

Report: $1.3 Billion in Crypto Stolen in Q1 2022, 97% Stemmed From Defi Exploits

According to a analysis report, $1.3 billion in digital currencies have been stolen throughout the first quarter of 2022. The research, revealed by researchers, additional highlights that 97% of the stolen funds derived from decentralized finance (defi) protocol exploits.

Defi Exploits Account for Lion’s Share of Stolen Crypto This Year

2022 is already breaking information by way of stolen cryptocurrencies from hacks and exploits. Last 12 months, $3.2 billion in digital currencies had been stolen and thus far, 2022 has recorded over 40% of 2021’s combination throughout the first quarter alone. The recorded stolen crypto information stems from a report revealed by and the research’s creator, Elizabeth Kerr. The report’s creator says “the numbers signify a significant spike.”

Report: $1.3 Billion in Crypto Stolen in Q1 2022, 97% Stemmed From Defi Exploits

For occasion, out of the $1.3 billion in digital currencies stolen this 12 months, 97% of the funds had been taken from defi protocols. In Q1 2021, solely 72% of the stolen funds derived from defi and in 2020, the quantity was as little as 30%. Moreover, a lot of the theft in 2022 got here from defective code exploits the place good contract errors have been used to siphon stolen cash from defi protocols. The creator says that as a result of the defi setting is open supply, anybody can seek for vulnerabilities and errors inside a defi challenge’s codebase.

Centralized Exchange Hacks Drop Significantly

The analysis additional particulars that in earlier years, centralized exchanges had been well-liked honeypots, however assaults on centralized buying and selling platforms has declined. “[Centralized exchange attacks] now solely account for lower than 15% of the [stolen] cryptos,” Kerr writes. The report additionally notes that frequent defi protocol hacks got here within the type of flash mortgage assaults and safety breaches. The report’s creator additional mentions the Ronin bridge attack, which noticed a lack of over $600 million.

“Hackers and cyber criminals made away with greater than $3.2 billion final 12 months and we simply might need a better quantity being stolen this 12 months, if the primary quarter is something to go by. The want for tighter safety measures grows by the day, particularly since extra persons are coming aboard,” Jonathan Merry, CEO at Cryptomonday defined in an announcement.

What do you consider the research that exhibits most of 2022’s stolen crypto belongings stemmed from defi protocol exploits? Let us know what you consider this topic within the feedback part beneath.

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