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$1.5B Stolen in Top 5 Crypto Heists of 2022: Forbes

Cryptocurrency firms have had major troubles in 2022 as several companies faced financial problems and bankruptcy. In addition to these challenges, over $3 billion was stolen from crypto projects this year, according to Forbes. These setbacks have caused turmoil in the industry and raised concerns about its stability.

According to the report, crypto projects have witnessed more than 125 hacks, and the top five heists (all with DeFilogs) accounted for $1.48 billion of the total stolen.

DeFi protocols suffered the most losses in 2022

Forbes highlighted that these top five crypto heists range from cross-chain hacks, code exploits, and flash loan attacks.

The five best hacks are Ronin Network’s $625 million exploitthe $325 million Wormhole heist, the $190 million Nomad Bridge hack, the $182 million Beanstalk Farms flash loan attack, and Wintermute’s $160 million exploit.

According to the report, DeFi hacks account for around 49% of the total amount stolen by hackers this year. This has led to lower investment in the sector as data from the BlockchainAnalytics firm Elliptic show that DeFi protocols lost 75% of their total locked value (TVL) in 2022. However, this also explains the falling asset prices.

Data from DeFi Llama also shows that TVL from DeFi protocols fell from $166.58 billion in early 2022 to $39 billion in December.

The Forbes report found that cross-chain bridges, which allow tokens to be exchanged between blockchains, have been the top target of hackers this year. Hackers stole nearly $2 billion from blockchain bridges, accounting for 70% of all crypto thefts in 2022.

Hackers love DeFi

The reports also show that despite its uniqueness, DeFi has become a popular playground for hackers. But how does it work?

Blockchain analytics platform Chainalysis reported that most thefts in the DeFi space stem from buggy codes that used smart contract bugs to steal funds from protocols.

The report explained that since the DeFi ecosystem is open source, anyone, including hackers, can look for vulnerabilities or bugs and plan exploits well in advance.

Source: Crypto News Deutsch

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