DeFi Attack: $1.5 Billion Stolen in Top 5 Crypto Heists of 2022: Forbes

Cryptocurrency companies struggled a lot in 2022, as many companies faced financial problems and bankruptcies. In addition to these challenges, more than $3 billion has been stolen from cryptocurrency projects this year, according to Forbes. These setbacks caused turmoil in the industry and raised concerns about its stability.

According to the report, crypto projects saw more than 125 hacks, and the first five thefts (which all involve decentralized finance (DeFi) protocols) accounted for $1.48 billion of the total amount stolen.

DeFi Protocols suffered the biggest losses in 2022

Forbes highlighted that the five biggest cryptocurrency hacks range from cross-chain hacks to crypto exploits to flash loan attacks.

The top five hacks are Exploiting the Ronin network at a value of $625 millionThe $325 million Wormhole heist, the $190 million Nomad Bridge hack, the $182 million Beanstalk Farm flash loan attack, and Wintermute exploit worth $160 million.

According to the report, DeFi hacks account for about 49% of the total amount stolen by hackers this year. This has led to lower investment in the sector, as data from blockchain analytics firm Elliptic shows that DeFi protocols lost 75% of their total value locked (TVL) in 2022. However, this also explains the drop in asset prices.

Data from DeFi Llama also shows that TVL of DeFi protocols fell from $166.58 billion in early 2022 to $39 billion in December.

A Forbes report found that cross-chain bridges, which allow the exchange of tokens between blockchains, have been the main target of hackers this year. Hackers have stolen nearly $2 billion from blockchain bridges, accounting for 70% of all crypto thefts in 2022.

Hackers love DeFi

Reports also show that DeFi has become a favorite playground for hackers despite its unique nature. But how does this happen?

Blockchain analytics platform Chainalysis reports that most thefts in the DeFi space are due to faulty tokens, where smart contract flaws were used to steal funds from the protocols.

The report explained that since the DeFi ecosystem is open source, anyone, including hackers, can scan for vulnerabilities or bugs and plan exploits in advance.

DeFi Under Attack Post: $1.5 Billion Stolen in Top 5 Crypto Heists of 2022: Forbes first appeared on CryptoPotato.

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