According to a report published on Tuesday by blockchain analysis company Chainalysis, a remarkable $1.9 billion worth of bitcoin was stolen in hacks of various services in the first seven months of this year, representing a 60% rise from the same time in the previous year.
Even though several cryptocurrencies saw a sharp decline in value in the first half of this year, there has been a surge.
The increase coincides with an increase in hacks into the protocols for decentralized finance (DeFi), according to Chainalysis’ blog post from Tuesday. The majority of DeFi applications are Ethereum-based, enabling crypto financing outside of conventional banks. Using software that enables users to deal directly with one another over the blockchain, the digital record that serves as the foundation for cryptocurrencies, the phrase is used to describe services that aim to replace traditional financial institutions.
Users may be vulnerable to hackers because protocols, which are programs that link crypto transactions without an intermediary, are built on open-source code that would-be thieves can analyze before carrying out a heist.
The blockchain analytics firm said in a blog post:
“No area of cryptocurrency-based crime is bucking the 2022 trend of declining revenue like stolen fund.”
DeFi protocols were the target of several of 2022’s most significant cryptocurrency hacks, including the $625 million Ronin network hack of the computer game Axie Infinity in March. Since then, some of these losses, notably the Axie incident, have been linked to North Korean hackers.
“We estimate that so far in 2022, North Korea-affiliated groups have stolen approximately $1 billion of cryptocurrency from DeFi protocols,” the blog stated.
The report’s finding that growing hacking activity isn’t likely to slow down anytime soon is its most worrying aspect.
There were also some notable attacks during the first half of August, which is not covered in the report, including a $190 million hack of the cross-chain bridge Nomad and a $5 million hack of numerous Solana wallets.
Related Reading: Harmony Dangles 2 Billion Tokens To Pay Back Hack Victims – Who Aren’t Happy With Plan
However, this year has seen a decline in crypto scams, which has decreased by 65%, roughly matching the fall in cryptocurrency prices over the same time period. This year, scammers brought in a total of $1.6 billion, a decrease from the $4.46 billion reported at this time previous year.
Chainalysis said:
“Since January 2022, scam revenue has fallen more or less in line with Bitcoin pricing. With asset prices falling, cryptocurrency scams — which typically present themselves as passive crypto investing opportunities with enormous promised returns — are less enticing to potential victims.”
BTC/USD trades slightly below $24k. Source: TradingView“Those numbers suggest that fewer people than ever are falling for cryptocurrency scams,” Chainalysis further said in the report.
According to Chainalysis, scam-related revenue have decreased along with the price of bitcoin since January 2022. In addition to a decline in scam proceeds, 2022 saw the fewest total individual transfers to scams over the previous four years.
“One reason for this could be that with asset prices falling, cryptocurrency scams — which typically present themselves as passive crypto investing opportunities with enormous promised returns — are less enticing to potential victims.”
This year, there has been pressure on regulators to tighten the reins on the cryptocurrency industry. While a new US Senate proposal would establish the Commodities and Futures Trading Commission as the primary industry overseer for cryptocurrency, the Securities and Exchange Commission announced it would nearly increase the employees in its crypto department.
Related Reading: Axie Infinity CEO Denies Claims Of Insider Trading; Game Token’s Value Down To Zero
Featured image from Shutterstock, chart from TradingView
In December, Microsoft shareholders will vote on investing in Bitcoin. Despite growing interest, the board advises against it, pointing to their current strategy of evaluating diverse investments, including Bitcoin. Will shareholders heed the board’s caution or opt for crypto?
Kikyo根据台湾金管会2025年度预算书，继去年对4家虚拟资产服务提供商（VASP）进行洗钱防制专项检查后，金管会将在今年第四季度继续扩大行动，目标企业增至6家。
MiyukiU.S. spot Bitcoin ETFs are nearing a milestone of one million BTC in holdings, driven by strong inflows and growing institutional demand. As Bitcoin's price rises, analysts warn that supply constraints could push prices even higher.
WeatherlyThe price of the AI-developed Solana-based token GOAT soared to $0.88 after Binance's futures listing but has since retraced to a bit over $0.70. It could approach $1 if trading volume and investor interest continue to rise. Will it hold steady, or is a decline imminent?
CatherineBingX, the Singapore-based cryptocurrency exchange, has fully resumed its services after a hot wallet incident on 20 September that disrupted deposits and withdrawals. To strengthen security against external threats, the exchange has introduced ShieldX, a new firewall for its wallets.
Kikyo美国加密货币交易所Kraken昨日宣布，计划于2025年第一季度推出自家的Layer 2网络「Ink」，并计划在年底前启动测试网。虽然Kraken明确表示暂时没有发行代币的计划，但市场仍然好奇其未来发展潜力。
Alex区块链分析平台 Arkham 今日凌晨发文指出，一个由美国政府控制的钱包疑似遭到黑客攻击，价值 2,000 万美元的 USDC、USDT、aUSDC 和 ETH 被转移至一个可疑地址，引发外界对美国政府持有的 20 万枚比特币安全性的担忧。
WeiliangIs Thailand entering the next phase of digital asset growth? Binance Thailand’s CEO notes a shift from retail to institutional investment, positioning the country as a key player and aspiring fintech hub in Southeast Asia.
CatherineCoinbase's new 'Based Agent' tool enables users to create autonomous AI agents on its Ethereum Layer-2 Base network in under three minutes. Supporting multiple blockchains, it also aims to enhance wallet security. Could this set a new standard for blockchain security?
Catherine研究公司 TechInsights 近期揭露华为最新的 AI 加速器中含有台积电制造的芯片，这可能违反了美国对华为的出口管制，引发美国国会强烈反应。台积电对此回应称，该芯片原为特定客户生产，但意外出现在华为产品中，公司已停止供应并将此事通报美国政府。
Alex