Developed by Blockchain Chainalysis From a recent report claiming That from the beginning of the year through July, just under two billion dollars in crypto funds were stolen by hackers and Internet thieves around the world.
Chainalysis Discusses Ongoing Crypto Theft
Losses from cryptocurrency hacks have risen by more than 60 percent in just the first seven months of 2022 alone. Many of these funds have been stolen from decentralized exchanges since they are much less regulated and less likely to be exposed to prying eyes. This is the major downside to challenge protocols; They take the concepts of encryption quite literally, and leave practically everyone who uses them to their own devices.
The numbers this year make 2021 look tame by comparison, because during the first seven months of that period, only $1.2 billion in cryptocurrency was stolen. Chainalysis states in its report that this trend is not likely to end anytime soon, and cited recent situations such as the $190 million hack of Nomad and $5 million in cryptocurrency stolen from several Solana wallets during the first week of August as evidence that Crypto hackers are. They become bolder in their plans.
Defi protocols are uniquely vulnerable to hacking, their open source code can be studied by cybercriminals looking for vulnerabilities, and incentives for the protocols to reach the market and grow quickly can potentially lead to loopholes in security best practices.
The analysis firm also mentioned in the document that much of the hacking that is taking place today can be attributed not to individuals or a few bad apples here and there, but rather to organized hacking groups like Lazarus in North Korea that have been stealing cryptocurrency for years in order to fund North Korea’s expanding nuclear program. Chainalysis says that this year, North Korea has likely stolen more than $1 billion from crypto funds.
One of the few parts of the good news is that cryptocurrency scams have taken a real dip, with these positions dropping by as much as 65 percent during the month of July. In 2022, the total revenue of crypto scams was only $1.6 billion – a complete reversal of the nearly $5 billion that was recorded in the same period in 2021.
Kim Grauer, Director of Research at Chainalysis, explained in an interview:
The scams are declining primarily due to the decline of cryptocurrency, but also due to the many gains made to law enforcement against fraudsters and product solutions that exchanges can use to combat fraud.
Crypto Falls, as well as scammers
As the company said in its report:
These numbers indicate that fewer people are involved in cryptocurrency scams than ever before. One reason for this may be that as asset prices fall, cryptocurrency scams – which usually present themselves as passive crypto investment opportunities with huge returns – are less alluring to potential victims.
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