The year 2022 was the biggest ever for cryptocurrency hacking, with $3.8 billion stolen from crypto businesses, according to a report by blockchain analytics firm Chainalysis. Hacking activity peaked in March and October, with the latter setting a new record for the largest amount of crypto stolen in a single month – $775.7 million in 32 separate attacks. The decentralized finance (DeFi) protocols were the hardest hit by the hacking activity, accounting for 82.1% of all cryptocurrency stolen by hackers, up from 73.3% in 2021, and amounting to $3.1 billion. Cross-chain bridge protocols, which allow users to port their cryptocurrency from one blockchain to another, were particularly attractive to hackers. Blockchain cybersecurity firm Halborn recommends DeFi code auditing conducted by third-party providers to mitigate vulnerabilities in smart contract code. North Korea-linked hackers emerged as the biggest culprits, breaking their own record and stealing an estimated $1.7 billion worth of cryptocurrency in 2022. A significant portion of that amount was stolen from DeFi protocols and sent to other protocols, with most experts believing the North Korean government is using the stolen funds to fund its nuclear weapons programs.
Full report link: https://blog.chainalysis.com/reports/2022-biggest-year-ever-for-crypto-hacking/