Blockchain Hackers Cost Crypto Ecosystems More Than $1B in Q1 2022

Blockchain hackers stole practically $1.3 billion in 78 hack occasions all through Q1 2022, in response to a new report by Atlas VPN. 

Primarily based on information offered by Slowmist Hacked, Atlas VPN discovered that hacks on Ethereum and Solana’s ecosystems resulted in additional than $1 billion in losses alone throughout Q1.

The Ethereum ecosystem misplaced practically $636 million to attackers in 18 hack occasions all through Q1 2022—the largest of which price the platform 173,600 Ethereum and 25.5 million USDC price $610 million. 

The Solana ecosystem, a rival to Ethereum, suffered 5 hack assaults in 2022 Q1 at price of $397 million. Wormhole, a communication bridge between Solana and different decentralized finance (DeFi) networks, was the second most important hack of the quarter, leading to a lack of $334 million. 

The $1 billion cybercrime haul additionally contains 14 hacks of the Binance Good Chain ecosystem at a lack of practically $100 million and  IRA Monetary Belief, which handles self-directed retirement accounts, lack of $36 million to a crypto hack.

Cybercriminals prime goal had been NFTs, which suffered $49 million in losses after 20 hacks, whereas exchanges misplaced $42 million over the course of three hacks. 

Additionally learn: DeFi: Should Wall Street Be Worried?

The Rising Menace to Blockchain Ecosystems

In Q1 2018, cryptocurrency tasks skilled a complete of 5 blockchain-related hacks, in response to Atlas VPN. The next 12 months that quantity elevated to 62m however dipped by 13 in Q1 2020. Q1 2021, hackers efforts jumped to 33, a rise of 154 p.c—reaching an all time excessive of 78 hack occasions in Q1 2022. 

The rise of DeFi has opened a brand new, profitable door for cybercriminals as greater than 300 cryptocurrency firms have entered the market. Blockchain is usually regarded as safe, however this groundswell has launched smaller exchanges that may not have the cybersecurity workers essential to safe their new ecosystems. Typically, the open availability of those platforms’ code provides hackers ample alternative to plot assaults, as was the case within the Wormhole hack—the second largest such hack behind the Poly Network hack, which price that cryptocurrency platform greater than $600 million (the hacker later returned all the funds). 

“Blockchain mission safety must be one of many main considerations for an individual trying to put money into cryptocurrency,” mentioned Atlas VPN’s cybersecurity author Vilius Kardelis. “Most blockchain-related hack occasions occur as a result of cybercriminals exploit flaws within the mission code. A profitable hack might trigger important losses to the creators and traders of the crypto platform.”

Learn subsequent: Enabling Data Security with Homomorphic Encryption