13.9 C
Sunday, September 25, 2022
HomeAnalysisLosses from crypto hacks surged 60% to $1.9 billion in Jan-July: Chainalysis

Losses from crypto hacks surged 60% to $1.9 billion in Jan-July: Chainalysis

New York : Losses from cryptocurrency hacks have risen to 60 in the first seven months of the year due to a surge in funds stolen from decentralized finance (DeFi) protocols, according to a blog post by blockchain analytics firm Chainalysis released on Tuesday. It jumped nearly 10% to reach $1.9 billion. .

During the same period last year, hackers stole $1.2 billion.

DeFi applications, many of which run on the Ethereum blockchain, are financial platforms that enable cryptocurrency loans outside of traditional banks.

Chainalysis quickly reversed this trend, considering there was already a $190 million hack in cross-chain bridge Nomad and a $5 million hack in multiple Solana wallets in the first week of August. points out that it is unlikely that

“DeFi protocols are uniquely vulnerable to hacking. The incentive to grow can lead to failure of security best practices,” said Chainalysis. blog.

Much of the stolen funds from DeFi protocols can be attributed to “bad guys” affiliated with North Korea, especially elite hacking units like the Lazarus Group, the US firm writes.

Chainalysis estimates that North Korea-affiliated groups have stolen about $1 billion in cryptocurrency from DeFi protocols so far this year.

When it comes to crypto fraud, blockchain intelligence firms saw a sharp decline of 65% through July, in line with the slump in digital asset prices. Total fraud revenue for the year to July was $1.6 billion, down 65% from approximately $4.46 billion in the same period last year.

Scammers can impersonate legitimate companies and offer fraudulent crypto coins or tokens.

Kim Grauer, director of research at Chainalysis, said: “While fraud is declining, largely due to the crypto recession, there have been many wins for law enforcement against scammers, and the trading We also appreciate the product solutions that firms can use to combat fraud.” Reuters.

According to CoinGecko, the cryptocurrency market capitalization was $1.1 trillion on Thursday, down more than 50% from about $2.35 trillion at the beginning of the year. Bitcoin’s price has dropped about 48% so far this year, hovering between $20,000 and $24,000 over the past few months.

Fraud-related revenues have fallen in line with the price of Bitcoin since January 2022, Chainalysis said. Not only has revenue from fraud declined, but the cumulative number of individual remittances to fraud in 2022 was the lowest in four years.

“These numbers show that fewer people are falling for cryptocurrency scams than ever before,” Chainalysis said in a report.

“One of the reasons for this is that as asset prices fall, cryptocurrency scams (usually presented as passive cryptocurrency investment opportunities with the promise of huge profits) become more attractive to potential victims. It’s no longer the target.”

Catch all business news, market news, breaking news events and breaking news updates with Live Mint. Download The Mint News app for daily market updates.


apply mint newsletter

* Please enter a valid email address

* Thank you for subscribing to our newsletter.



Most Popular