The crypto industry has become a breeding ground for hackers and malicious actors, with staggering losses exceeding $30 billion since 2012, according to research by blockchain security firm SlowMist. This article delves into the various dimensions of crypto hacking, revealing the targets, tactics, and amount of money stolen by hackers.
One of the most prominent findings of the research is that centralized exchanges have borne the brunt of these attacks, losing a staggering $10.95 billion. SlowMist’s data reveals that these exchanges have suffered from 118 hacks since 2012, with the two most significant incidents occurring in 2021, amounting to approximately $5 billion in losses. What is particularly alarming is that most of these hacks took place during bullish market cycles, indicating that hackers are well-positioned to exploit vulnerabilities during times of optimism and upward price movements in the crypto market.
While centralized exchanges faced the largest losses, blockchain networks and cryptocurrency wallets also fell victim to these cybercriminals. Hackers managed to extract less than $1 billion directly from blockchain networks and wallets. Hot wallets alone endured losses of $408.9 million, highlighting their susceptibility to attacks. Blockchain networks, on the other hand, lost a comparatively smaller sum of $207.2 million. The research also sheds light on the alarming losses incurred by the non-fungible token (NFT) sector, totaling $200 million. Phishing links and social engineering scams played a significant role in these NFT-related losses.
SlowMist’s research highlights the ecosystem vulnerabilities by examining the hacks on specific blockchain networks. Ethereum took the hardest hit, losing $3.1 billion across 217 separate hacks. BNB Chain (formerly Binance Smart Chain) was not far behind, with losses of $1.45 billion in 162 distinct hacks. In contrast, the EOS ecosystem experienced relatively smaller losses of $25.9 million, despite being the third most frequently targeted. Solana and Polygon faced significant losses of $202.7 million and $177.9 million, respectively, even though they encountered fewer attacks. Avalanche, on the other hand, succumbed to eight compromises, resulting in a cumulative loss of $127.7 million. Other chains, including Tron, Fantom, Polkadot, and HECO, collectively endured fewer than 50 hacks and lost less than $200 million.
The research also acknowledges that not all hacks fall neatly into predefined categories. The “Other” category encompasses various forms of digital theft, scams, rug pulls, and other types of blockchain hacks not explicitly mentioned. This catch-all category accounts for a significant portion of the stolen funds, amounting to a staggering $10.9 billion.
The crypto industry’s vulnerability to hacking is a cause for concern. Despite advances in security measures, hackers continue to exploit loopholes, resulting in substantial financial losses. Centralized exchanges, blockchain networks, and NFTs have all suffered at the hands of cybercriminals. As the crypto industry evolves, safeguarding digital assets and implementing robust security measures will be crucial to protecting against future attacks and securing investors’ confidence.
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