BNB Chain lost over $750 million to hackers in 2022, making it the biggest victim of blockchain attacks last year.
2022 was indeed a challenging year for the crypto industry, marked by significant declines in the value of major assets, liquidity issues for many firms, and an unfortunate number of bankruptcy filings. The industry also faced substantial security threats as hackers stole billions of dollars from users and DeFi protocols.
A report by blockchain security firm SlowMist, titled “Blockchain Security and AML Analysis,” provided an overview of the security status of various sectors within the crypto industry, analyzing the flow of stolen funds in more than 300 hacks that occurred in 2022.
Hackers Stole Over $3.7B in 2022
According to the document, 303 blockchain-related security incidents happened last year, resulting in losses of an estimated $3.7 billion (calculated at the market price at the time of the exploit).
The amount lost represents a 61% drop from the $9.795 billion lost in 2021, although SlowMist did not consider the value lost due to market volatility.
The report revealed that about 255 security incidents affected various ecosystems, including DeFi, cross-chain bridges, and non-fungible tokens (NFTs). Additionally, there were ten security incidents involving crypto exchanges, 11 attacking public chains, six exploiting wallets, and 21 of other types.
The DeFi ecosystem lost $2.075 billion to hackers, approximately 55% of the total losses for the year, while cross-chain bridges recorded $1.212 billion of stolen funds, about 32% of the entire amount during the year.
Per the paper, there were 56 security incidents reported in the NFT space, resulting in losses totaling over $65.44 million.
“Many of these incidents were caused by phishing attacks, accounting for about 39% (22 incidents), followed by Rug Pulls, accounting for about 21% (12 incidents). The remaining 30% (17 incidents) were caused by contract vulnerabilities or other internal factors,” the report stated.
BNB Chain – The Biggest Hack Victim in 2022
The report shows that BNB Chain (formerly known as Binance Smart Chain – BSC) was the biggest victim of blockchain security incidents last year. The blockchain experienced 79 attacks, resulting in losses of up to $785 million.
The research found that blockchain mixers gained popularity last year, with them being the favorite tool for hackers to launder their ill-gotten proceeds. Per the report, 1,233,129 ETH (approx. $2.83 billion) was deposited to the now-sanctioned crypto mixer Tornado Cash, while 40,065 BTC was deposited to ChipMixer in 2022.
The report also revealed that some industry projects have started implementing effective measures for blockchain anti-money laundering to prevent attackers from profiting from their crimes.
Stablecoin issuers Tether and Circle blocked 376 addresses in 2022 to prevent funds in the wallets from being moved out by attackers.
Meanwhile, while crypto theft exceeded $3.7 billion in 2022, another report revealed that illicit crypto transactions reached a record high of $20 billion during the same period.
Prominent cryptocurrency founder MaxBecauseBTC predicts a bullish future for Dogecoin, which could potentially lead to increases in other altcoins.
WeiliangThe 12 projects, now defunct, collectively raised $26.7 million through a controversial fundraising technique called a presale.
CatherineVenezuelan Oil Minister Pedro Tellechea has affirmed the nation's embrace of diverse currencies, including digital ones, as outlined in contractual agreements.
KikyoBinance is sued for selling unregistered crypto derivatives, violating securities laws, with ongoing investigations by Ontario's authorities.
AlexMelania Trump steps up in support of her husband's struggling NFT ventures, launching her own successful collections, showcasing resilience and dedication. Donald Trump's crypto holdings, including a significant stake in MAGA Coin, raise questions amidst the couple's foray into NFTs and potential political ambitions.
WeatherlyThe International Monetary Fund has revealed in its latest report that Bitcoin has become an essential financial tool for preserving wealth.
MiyukiChina and Russia have almost entirely abandoned the US dollar in all bilateral trade, paving a profitable path for the yuan.
WeiliangTether announces the integration of its USDT into Telegram's TON network; Apple's App Store in China has removed the app.
BrianInvestors have waited 10 years for the now-bankrupt cryptocurrency exchange Mt. Gox to announce that it will repay creditors nearly $9.5 billion in Bitcoin by this October, which could put short-term selling pressure on Bitcoin.
WeatherlyCosmos swiftly addressed a critical vulnerability in its IBC protocol, averting a potential theft of over $126 million across multiple blockchain ecosystems.
Alex
