Trending: Investing in Bitcoin / 5 reasons to invest in Amazon / Investing in the Metaverse
Saturday, June 3, 2023
INVESTOR TIMES
  • Home
  • News
    cheap car insurance labelle florida

    Cheap Auto Insurance Labelle FL: Compare Quotes Online + Buy Now Pay Later Option

    cheap kerrville car insurance

    Cheap Auto Insurance in Okeechobee FL: Companies Offer Low Cost Quote Comparison

    Cheap Car Insurance Does Exist in Mesa Arizona

    Car Insurance in Kerrville Texas: What Companies Offer Cheap Rates

    cheap auto insurance mesa az

    Cheap Car Insurance Does Exist in Mesa Arizona

    Used cars prices rise unusually in the U.S

    Most Popular Car Insurance Companies in Each State in 2023

    Central bank gold demand reaches record high in first quarter

    Central bank gold demand reaches record high in first quarter

    Snap Inc. does not see a light at the end of the tunnel (quite the contrary)

    Snap Inc. does not see a light at the end of the tunnel (quite the contrary)

    Big losers of 2022: Bernard Arnault, Elon Musk and Jeff Bezos

    Big losers of 2022: Bernard Arnault, Elon Musk and Jeff Bezos

    Authentic Brands Group beats Bluestar Alliance to buy Boardriders

    Authentic Brands Group beats Bluestar Alliance to buy Boardriders

  • Markets
    Intel stock in 2023: good entry point?

    Intel stock in 2023: good entry point?

    Possible Fed pause not a buy signal, BofA says

    Possible Fed pause not a buy signal, BofA says

    Iberdrola targets U.S. and Europe after sale of assets in Mexico

    Iberdrola targets U.S. and Europe after sale of assets in Mexico

    What factors drive Shopify stock?

    What factors drive Shopify stock?

    Jack Ma’s return to China and the (good) reaction of Alibaba shares

    Jack Ma’s return to China and the (good) reaction of Alibaba shares

    Investing in Lululemon: buy or wait and see which way the stock goes?

    Investing in Lululemon: buy or wait and see which way the stock goes?

    Will Europe’s commercial real estate sector be the next to fall?

    Will Europe’s commercial real estate sector be the next to fall?

    Investing in Playtech? High growth potential in the United States

    Investing in Playtech? High growth potential in the United States

    BlackRock’s warning to investors about interest rate cuts

    BlackRock’s warning to investors about interest rate cuts

  • Investing
    Real estate investing strategies: How to simplify mortgage settlements for savvy investors

    Real estate investing strategies: How to simplify mortgage settlements for savvy investors

    What factors drive Shopify stock?

    What factors drive Shopify stock?

    Why Adidas and Beyoncé are splitting up and what it means for investors

    Why Adidas and Beyoncé are splitting up and what it means for investors

    Sinclair stock generate ambiguity among experts

    Sinclair stock generate ambiguity among experts

    Mercado Libre invests millions in Mexico and Brazil

    Mercado Libre invests millions in Mexico and Brazil

    Big Technologies has large margins and the advice is to wait

    Big Technologies has large margins and the advice is to wait

    Warren Buffett’s best advice to Bill Gates

    Warren Buffett’s best advice to Bill Gates

    What are AT1 bonds and why did Credit Suisse make them news?

    What are AT1 bonds and why did Credit Suisse make them news?

    Hedging hurts more than stock market declines, study says

    Hedging hurts more than stock market declines, study says

  • Technology
    What’s behind the drop in C3.ai shares?

    What’s behind the drop in C3.ai shares?

    Huawei boosts China in chip wars

    Huawei boosts China in chip wars

    Elon Musk plans to compete in AI with Microsoft and Google

    Elon Musk plans to compete in AI with Microsoft and Google

    TikTok ban would violate the First Amendment

    TikTok ban would violate the First Amendment

    Twitter is worth half as much as before Elon Musk

    Twitter is worth half as much as before Elon Musk

    Tech leaders call for 6-month halt to AI developments

    Tech leaders call for 6-month halt to AI developments

    Mexican fintech unicorn bets on expansion in Brazil

    Mexican fintech unicorn bets on expansion in Brazil

    7 Reasons to Invest in Instagram Marketing

    7 Reasons to Invest in Instagram Marketing

    Why Americans want to remove Instagram from their phones

    Why Americans want to remove Instagram from their phones

  • CryptocurrenciesTRENDING
    Why has cryptocurrency trading volume fallen so much?

    Why has cryptocurrency trading volume fallen so much?

    Hunters On-Chain: a play-to-earn game for investment and fun at the same time

    Hunters On-Chain: a play-to-earn game for investment and fun at the same time

    Bitcoin price could reach new highs in 2025

    Bitcoin price could reach new highs in 2025

    Tether on track for new market capitalization record

    Tether on track for new market capitalization record

    Sony patents NFT developments for its consoles and video games

    Sony patents NFT developments for its consoles and video games

    Audits, complaints, taxes, celebrity fines: what is the SEC looking for?

    Audits, complaints, taxes, celebrity fines: what is the SEC looking for?

    Binance victory lasted only a few weeks, says Kevin O’Leary

    Binance victory lasted only a few weeks, says Kevin O’Leary

    SEC redoubles pressure against the crypto sector

    SEC redoubles pressure against the crypto sector

    Do Kwon and Chang-joon apprehended trying to escape to Dubai

    Do Kwon and Chang-joon apprehended trying to escape to Dubai

  • Home
  • News
    cheap car insurance labelle florida

    Cheap Auto Insurance Labelle FL: Compare Quotes Online + Buy Now Pay Later Option

    cheap kerrville car insurance

    Cheap Auto Insurance in Okeechobee FL: Companies Offer Low Cost Quote Comparison

    Cheap Car Insurance Does Exist in Mesa Arizona

    Car Insurance in Kerrville Texas: What Companies Offer Cheap Rates

    cheap auto insurance mesa az

    Cheap Car Insurance Does Exist in Mesa Arizona

    Used cars prices rise unusually in the U.S

    Most Popular Car Insurance Companies in Each State in 2023

    Central bank gold demand reaches record high in first quarter

    Central bank gold demand reaches record high in first quarter

    Snap Inc. does not see a light at the end of the tunnel (quite the contrary)

    Snap Inc. does not see a light at the end of the tunnel (quite the contrary)

    Big losers of 2022: Bernard Arnault, Elon Musk and Jeff Bezos

    Big losers of 2022: Bernard Arnault, Elon Musk and Jeff Bezos

    Authentic Brands Group beats Bluestar Alliance to buy Boardriders

    Authentic Brands Group beats Bluestar Alliance to buy Boardriders

  • Markets
    Intel stock in 2023: good entry point?

    Intel stock in 2023: good entry point?

    Possible Fed pause not a buy signal, BofA says

    Possible Fed pause not a buy signal, BofA says

    Iberdrola targets U.S. and Europe after sale of assets in Mexico

    Iberdrola targets U.S. and Europe after sale of assets in Mexico

    What factors drive Shopify stock?

    What factors drive Shopify stock?

    Jack Ma’s return to China and the (good) reaction of Alibaba shares

    Jack Ma’s return to China and the (good) reaction of Alibaba shares

    Investing in Lululemon: buy or wait and see which way the stock goes?

    Investing in Lululemon: buy or wait and see which way the stock goes?

    Will Europe’s commercial real estate sector be the next to fall?

    Will Europe’s commercial real estate sector be the next to fall?

    Investing in Playtech? High growth potential in the United States

    Investing in Playtech? High growth potential in the United States

    BlackRock’s warning to investors about interest rate cuts

    BlackRock’s warning to investors about interest rate cuts

  • Investing
    Real estate investing strategies: How to simplify mortgage settlements for savvy investors

    Real estate investing strategies: How to simplify mortgage settlements for savvy investors

    What factors drive Shopify stock?

    What factors drive Shopify stock?

    Why Adidas and Beyoncé are splitting up and what it means for investors

    Why Adidas and Beyoncé are splitting up and what it means for investors

    Sinclair stock generate ambiguity among experts

    Sinclair stock generate ambiguity among experts

    Mercado Libre invests millions in Mexico and Brazil

    Mercado Libre invests millions in Mexico and Brazil

    Big Technologies has large margins and the advice is to wait

    Big Technologies has large margins and the advice is to wait

    Warren Buffett’s best advice to Bill Gates

    Warren Buffett’s best advice to Bill Gates

    What are AT1 bonds and why did Credit Suisse make them news?

    What are AT1 bonds and why did Credit Suisse make them news?

    Hedging hurts more than stock market declines, study says

    Hedging hurts more than stock market declines, study says

  • Technology
    What’s behind the drop in C3.ai shares?

    What’s behind the drop in C3.ai shares?

    Huawei boosts China in chip wars

    Huawei boosts China in chip wars

    Elon Musk plans to compete in AI with Microsoft and Google

    Elon Musk plans to compete in AI with Microsoft and Google

    TikTok ban would violate the First Amendment

    TikTok ban would violate the First Amendment

    Twitter is worth half as much as before Elon Musk

    Twitter is worth half as much as before Elon Musk

    Tech leaders call for 6-month halt to AI developments

    Tech leaders call for 6-month halt to AI developments

    Mexican fintech unicorn bets on expansion in Brazil

    Mexican fintech unicorn bets on expansion in Brazil

    7 Reasons to Invest in Instagram Marketing

    7 Reasons to Invest in Instagram Marketing

    Why Americans want to remove Instagram from their phones

    Why Americans want to remove Instagram from their phones

  • CryptocurrenciesTRENDING
    Why has cryptocurrency trading volume fallen so much?

    Why has cryptocurrency trading volume fallen so much?

    Hunters On-Chain: a play-to-earn game for investment and fun at the same time

    Hunters On-Chain: a play-to-earn game for investment and fun at the same time

    Bitcoin price could reach new highs in 2025

    Bitcoin price could reach new highs in 2025

    Tether on track for new market capitalization record

    Tether on track for new market capitalization record

    Sony patents NFT developments for its consoles and video games

    Sony patents NFT developments for its consoles and video games

    Audits, complaints, taxes, celebrity fines: what is the SEC looking for?

    Audits, complaints, taxes, celebrity fines: what is the SEC looking for?

    Binance victory lasted only a few weeks, says Kevin O’Leary

    Binance victory lasted only a few weeks, says Kevin O’Leary

    SEC redoubles pressure against the crypto sector

    SEC redoubles pressure against the crypto sector

    Do Kwon and Chang-joon apprehended trying to escape to Dubai

    Do Kwon and Chang-joon apprehended trying to escape to Dubai

INVESTOR TIMES
Home Cryptocurrencies

Crypto hackers stole $2 billion during first half of 2022

During the first 6 months of 2022, digital crime increased significantly, which also contributed to the loss of interest in the cryptocurrency market.

Alejandro Gil by Alejandro Gil
7/19/2022 - 18:12
in Cryptocurrencies
Reading Time: 5 mins read
Share on FacebookShare on TwitterShare on LinkedIn
  • According to a recent study by the firm Atlas VPN, during the first half of 2022, hackers in the crypto market stole $1.97 billion.
  • Among the most striking breaches was the one suffered by Axie Infinity’s Ronin layer, which lost more than $600 million to alleged North Korean hackers.
  • The most targeted ecosystem was BNB Chain with 47 hacks. But the one that suffered the biggest drain of funds was Ethereum, with more than 50% of the total amount of thefts.

Among the various negative aspects surrounding the cryptocurrency market, theft by hackers stands out. During the first half of this year, crypto hackers made off with an estimated $2 billion. The extractions were divided into different tokens, according to data from the firm Atlas VPN recently published on its official site.

The main target of the criminals was the Ethereum ecosystem, particularly its decentralized finance or DeFi applications. It is of utmost importance to keep in mind that blockchain is the most secure technology in the whole world. The thefts occur in a specific place that depends on the human hand and, therefore, errors. This is the programming of smart contracts.

Usually, developers leave bugs in some projects, which are exploited by highly experienced computer criminals. Some decentralized applications or Dapps have high security standards and others not so much. Hence, hackers have a wide catalog of choice, since there are numerous platforms within DeFi. It should be noted that, although Ethereum is the main target, it is not the only one.

Crypto hackers on the attack in 2022

A total of $1.97 billion was extracted by crypto hackers from DeFi projects in just 6 months. This is a colossal figure, which is equivalent to the entire LTV of decentralized finance during the first half of 2020. From the Ethereum ecosystem, they took 50% of that entire amount in a total of 32 attacks.

Within what was stolen on Ethereum, more than 60% was extracted from the Ronin protocol, on which the popular Axie Infinity game runs. This play-to-earn application suffered a scandalous breach in which criminals stole the equivalent of $625 million dollars. The sum was extracted between the Ether coin and the USDC stablecoin.

As highlighted above, bugs in programming are entirely the responsibility of the developers and not the blockchain. In that regard, the game’s top executive, Alexander Larsen, told Coindesk that the company itself was fully responsible for what happened and apologized to users for the programming security flaws.

In any case, the thefts in the DeFi space are becoming a worrying trend that generates concern in the community. Crypto hackers are on the prowl and as long as there is no regulatory system with standard security protocols, they will be able to gain victims in the ecosystem. Some projects have strong programming security, but it is not shared with their rivals.

Axie Infinity's Ronin was the biggest of the crypto hackers' victims
One of the largest cash withdrawals in the history of decentralized finance occurred in the first half of 2022. The victim was the popular Axie Infinity game, which suffered the theft of some $625 million from its Ronin layer. Image credit: Nftnewspro.com

Solana was next on the crypto hackers’ list

The aforementioned report based on data from analytics firm SlowMist Hacked determined that the second most stolen project was Solana. It is one of the most promising blockchains thanks to its scalability power, which can process more than 50,000 transactions per second and has advantageous features for users and programmers.

This ecosystem suffered 5 attacks during the first half of the year. Although there were 27 fewer than in Ethereum, they were accurate and painful for the projects hit. From the Solana Dapps, the hackers took about $383.9 million US dollars in digital coins and tokens. Of these, the largest corresponds to the breach of the Wormhole bridge platform.

In early February, it became known that crypto hackers extracted $325 million from Wormhole, leaving the Solana community in shock. The sensitivity of this hack is that the protocol is a bridge that allows users to move their funds between the Solana and Ethereum ecosystems. The result was a total distrust of this type of applications that until then were considered one of the most striking tools for the massification of DeFi.

The theft of this bridge became at that time the second largest in the history of decentralized finance. Until then, the record was held by the Poly Network breach in August 2021, with an approximate extraction of $600 million. In that case, the hacker returned the funds voluntarily and was rewarded by the protocol’s management.

Crypto hackers attacked Solana's Wormhole bridge earlier this year
Another of the big thefts of this first half of the year was carried out against the Wormhole bridge, which allows token trading between the Solana (to which it belongs) and Ethereum ecosystems. The theft was $325 million and was executed in early February. Image: Altcoinbuzz.io

Other ecosystems affected by crypto hackers

BNB Chain, the chain of the powerful Binance exchange, came in third place in terms of amounts stolen and first in terms of number of breaches. In just 6 months, this ecosystem suffered 47 attacks by cybercriminals, who took a total of $141.4 million dollars.

“The worst month for DeFi projects was May, where 37 breaches were reported.”

Likewise, among the hackers’ victims, non-fungible token (NFT) platforms stand out. In this space, some 45 vulnerabilities were reported, costing the investment community about $84.6 million in collectibles. From centralized exchanges (CEX) hackers made off with $35.8 million in 4 attacks.

In parallel, crypto hackers drained $263,382 from digital wallets in two incidents. Thus, the number of attacks on crypto market platforms in general doubled. Compared to 90 incidents in the first half of 2021 there were now 175, according to data from the aforementioned report. This equates to 94% growth.

The proliferation of crime within cryptocurrency platforms becomes one of the biggest challenges ahead for developers. Regaining investors’ trust becomes an uphill task as long as thefts become one of the most profitable activities for criminals. The worst month for DeFi projects was May, when 37 breaches were reported.

The most recent thefts in DeFi

As a sign of the boom in crypto market thefts, it is noted that the most recent event occurred about 3 days ago. The victim was the decentralized liquidity services platform Crema Finance, which runs on the Solana blockchain. In a series of texts on the social network Twitter, the company announced the extraction of almost $9 million by a hacker.

For now, the project suspended its activities and is working with experts to track the activity of criminals. They also state that the door is not closed for an amicable return of the extracted funds before taking further action.

Another major theft of recent date occurred against the Harmony chain. The crypto hackers who carried out this theft came from North Korea, one of the most active countries in money theft. The aforementioned platform suffered the mining of about $100 million in different currencies such as Ethereum, BNB and USDT and Wrapped Bitcoin. The breach was also executed on a bridge(Horizon Bridge).

Although Harmony is not among the most important of the multipurpose blockchains, some of its projects are of relevance. One of them is the popular DeFi Kingdoms game, which is one of the most complete in the entire crypto universe and is shaping up as a prelude to what could be a future metaverse platform.

In any case, the thefts within DeFi prolong the agony of a market that has suffered consecutive blows.

Lazarous is the most fearsome gang of hackers

Among the main beneficiaries of the thefts from crypto platforms are professional hackers from North Korea. Particularly, the Lazarous group is counted, which would have in its history thefts in the order of $2 billion dollars. Consequently, sophisticated North Korean hackers would have been responsible for the theft from Harmony.

They were also allegedly behind the colossal extraction of Axie Infinity’s Ronin. Now, experts explain, the Asian criminals are specializing in targeted attacks instead of small hacks. To this end, their actions are shifting from small protocols to bridges. This is where most of the money is being collected, as it involves combined figures from different protocols.

Likewise, these pirates would focus their thefts on projects in the Asia-Pacific region. Although Harmony, their most recent trophy, has its central point in the United States, a large part of the team is located in the aforementioned eastern region.

Thus, North Korean crypto hackers emerge as the most active and have perpetrated 15 successful attacks. Not far behind them are the American hackers, also with 15 verified thefts. The list is followed by criminals from Russia, China, the United Kingdom and Japan.

North Korean hackers are among the most successful in the world
The North Korean hacker group Lazarous, with sophisticated tools, is one of the most successful in stealing large protocols and bridges within decentralized finance. This group would have carried out the theft of Ronin and Harmony and in their entire track record they would carry a balance of $2 billion. Image: Techwireasia.com

Negative consequences for decentralized finance

As one might expect, this negative burden on this financial form is one of the main drivers of the debacle. While the fall of Bitcoin and the rest of the cryptocurrencies has directly caused interest in decentralized finance to plummet, insecurity plays a major role. The most important applications are abandoned en masse since the end of 2021.

But in the second quarter of 2022, with the shock of the fall of Terra, the problems multiplied for DeFi projects. Dapps for lending, liquidity and decentralized exchanges have lost most of the trading volume and total value locked (TVL) since the peaks reached in November 2021.

To put a case in point, the Aave protocol held a TVL greater than $33 billion in November and now barely exceeds $5 billion. Capital flight, the collapse of Terra and the decline in the value of tokens and, with them, their yield, are among the main causes of investors abandoning DeFi.

But the actions of crypto hackers, which have always been a cause for concern, are now becoming a top-level alert due to the accelerated growth of hacking episodes. The lack of clear regulation also interferes with the ability of law enforcement agencies to prosecute criminals more effectively.

DeFi's LTV has deflated dramatically in just a few months
In November 2021, the total value locked or TVL in decentralized finance amounted to about $303 billion. Now, it is just over $80 billion, of which $50 billion or so is in the Ethereum ecosystem. Image: Defillama.com

DeFi’s LTV continues to deflate

Overall, the bleeding of decentralized finance in terms of LTV, is one of the most outrageous. By November of last year they had amassed $303 billion in investor funds. Now, the figure is equivalent to $83.2 billion in the same currency denomination.

Of the amount described above, some $52.16 billion is in the Ethereum ecosystem, according to statistics portal Defillama.com. Many participants in that market claim that DeFi should not be subject to regulation. Doing so would be an attack on their very philosophy.

Despite what the concept of DeFi means for the financial independence of millions of people, non-regulation wreaks havoc. One should not lose sight of the fact that just as theft by crypto hackers proliferates, so do fake projects

The latter are platforms that offer attractive returns to attract the capital of thousands of users. Once they have enough capital deposited, the creators proceed to appropriate it by taking advantage of the anonymity guaranteed by the decentralized finance ecosystem. Rugpulls are becoming one of the phenomena that cause the abhorrence of DeFi.

Although avoiding a scam is more feasible than avoiding the exploitation of a bug by hackers, new users are often easy prey to them. In any case, the recommendation is to always keep your eyes open before putting money into decentralized projects, as they give criminals an advantage.

Tags: BitcoincryptocurrenciesDeFiEthereumhackingSolana

Related articles

Why has cryptocurrency trading volume fallen so much?
Cryptocurrencies

Why has cryptocurrency trading volume fallen so much?

by Santiago Contreras
— April 26, 2023
Hunters On-Chain: a play-to-earn game for investment and fun at the same time
Cryptocurrencies

Hunters On-Chain: a play-to-earn game for investment and fun at the same time

by Alejandro Gil
— April 23, 2023
Bitcoin price could reach new highs in 2025
Cryptocurrencies

Bitcoin price could reach new highs in 2025

by Alejandro Gil
— April 21, 2023
Tether on track for new market capitalization record
Cryptocurrencies

Tether on track for new market capitalization record

by Santiago Contreras
— April 19, 2023
Sony patents NFT developments for its consoles and video games
Cryptocurrencies

Sony patents NFT developments for its consoles and video games

by Pablo Petovel
— April 8, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Last published articles

cheap car insurance labelle florida
News

Cheap Auto Insurance Labelle FL: Compare Quotes Online + Buy Now Pay Later Option

by Scott Patreus
— June 3, 2023
cheap kerrville car insurance

Cheap Auto Insurance in Okeechobee FL: Companies Offer Low Cost Quote Comparison

by Scott Patreus
  June 3, 2023

Cheap Car Insurance Does Exist in Mesa Arizona

Car Insurance in Kerrville Texas: What Companies Offer Cheap Rates

by Scott Patreus
  June 3, 2023

cheap auto insurance mesa az

Cheap Car Insurance Does Exist in Mesa Arizona

by Scott Patreus
  June 3, 2023

Used cars prices rise unusually in the U.S

Most Popular Car Insurance Companies in Each State in 2023

by Scott Patreus
  June 2, 2023

Facebook Twitter LinkedIn Telegram RSS

ABOUT INVESTOR TIMES

INVESTOR TIMES is an independent publication of economic, finance and investment content, owned and operated by Altas Ventures.

MORE ABOUT US

  • Our team
  • Work with us
  • Advertise on IT
  • Contact
  • Corporate information
  • Terms of Use
  • Cookies Policy
  • Privacy Policy

INTERNATIONAL EDITIONS

Investor Times in English

Investor Times en Français

Investor Times in Deutsch

Investor Times in Italiano

Investor Times em Português

Investor Times po Polsku

Investor Times на русском языке

El País Financiero (edición en Español)

© ATLAS VENTURES SLU, all rights reserved. Any information contained in INVESTOR TIMES is for educational and/or informational purposes only, it is not financial and/or investment advice. INVESTOR TIMES may obtain economic retribution by recommending services or products of third parties. INVESTOR TIMES does not accept, nor will it accept in the future, subsidies or funds from Governments, political parties or public institutions.

No Result
View All Result
  • Home
  • News
  • Markets
  • Investing
  • Cryptocurrencies
  • Technology

  •  EXCLUSIVE  3 Russian men are the real perpetrators behind Juicy Fields, says Glanse

     NEW  Compound Interest Calculator

     TRENDING 
    Investing in Bitcoin Investing in the Metaverse 5 reasons to invest in Amazon

© ATLAS VENTURES, all rights reserved.