Crypto Hacks Drained Over $1 Billion From DeFi Protocols in 2022 So Far: SlowMist Report

Summary:

  • Some seven protocols have suffered cryptographic hacks as of June 30, 2022.
  • These protocols were cross-chain bridges and DeFi projects according to SlowMist’s report.
  • Hackers have stolen north of $1 billion from these security holes.
  • Over $2.4 billion from hacks and exploits have been deposited into the crypto mixing service Tornado Cash.
  • This represents over 70% of all crypto hack revenue in 2022 so far.
  • The exchanges lost around $77 million due to security-related issues.

The latest crypto report from SlowMist show that more than $1 billion was stolen from decentralized finance (DeFi) protocols and cross-chain bridges in multiple security breaches in the first half of 2022.

According to the blockchain analytics firm, the figure stood at $1.043 billion as of June 30, 2022.

The report noted that these crypto hacking products were drained from seven cross-chain bridge protocols that encountered security issues and exploits between January and June. Of March $600 million worth of hacking on the Ronin Network, one of the biggest hacks in crypto history, topped the report’s list.

As previously reported, the sidechain built by Sky Mavis for its blockchain game Axie Inifitiy suffered a cyberattack. The hackers were later identified as Lazarus, a North Korean group known to have pulled off large-scale exploits.

Crypto hacks involving Wormhole, Optimism, and Harmony, to name a few, were also included in the Slow Mist report.

Hackers Leverage Tornado Cash Throughout First Half of 2022

Data from the scan also revealed that crypto mixing service Tornado Cash has been exploited multiple times after DeFi protocols were hacked. A mixing rig obscures the source of digital assets when they are deposited. Protocols like Tornado Cash take advantage of codes to aggregate digital assets and make the origins of transactions difficult to trace.

Wednesday’s report indicates that over $2.4 billion worth of crypto hack proceeds have been deposited into Tornado Cash. This represents 74.6% of all funds stolen from exploits on DeFi projects and cross-chain bridges.

Exchanges Lose Less Than $100 Million in Crypto Hacks and Security Breaches

Notably, the report pointed out that crypto exchanges suffered fewer losses due to security issues. The total funds tapped from the exchanges stood at around $77 million, according to the report. The report covered data from attacks on decentralized exchanges like Uniswap and KLAY Swap.

The Crypto.com centralized trading platform was also mentioned.



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