With two weeks left, October turns the worst month for cryptocurrency hacks

    TheMorningCrypto Desk
    TheMorningCrypto Desk
    Published on October 13, 2022 12:16 PM

    Updated on January 25, 2023 12:29 PM

    According to research company Chainalysis, almost $718 million has been taken via DeFi protocols so far this month across eleven distinct attacks.
    With two weeks left, October turns the worst month for cryptocurrency hacks

    With two weeks remaining in the month and losses totaling over $718 million, October has surpassed all previous records for crypto-related crimes. According to information provided by Chainalysis on Thursday, there were eleven distinct assaults that resulted in the theft of the money from various decentralised finance (DeFi) protocols.

    According to Chainalysis experts, "2022 will probably surpass 2021 as the largest year for hacking on record." "Over $3 billion has been earned by hackers to far over 125 attacks."

    According to Jasper Lee, audit tech lead at crypto auditing company, despite the present bear market, we're witnessing a lot of activity from hackers who are targeting multiple protocols.

    "They provide quick, dependable profit for protocols or Dapps [decentralised apps] that have not undergone extensive auditing. Insecure protocols are easy pickings for hackers because they are too readily accessible and locked "Led by Lee.

    In 2021, attackers made more than $3.2 billion. However, this year got off to an even worse start with a $325 million Wormhole vulnerability, a $625 million Ronin bridge assault, a $200 million Nomad bridge exploit, and finally a $200 million Wormhole exploit.

    Attack methods in the cryptocurrency industry range from market manipulation, where rogue traders use millions of dollars to sway thinly traded markets in their favour to make multiples of the initial capital invested, to the exploitation of bridges, a blockchain-based tool that enables users to transact between different networks.

    According to Chainalysis, more than three bridges have been penetrated this month alone. An assault on a BNB Chain-based bridge over the weekend resulted in exploiters earning over $100 million without authorization after the bridge was used to steal $566 million. Then on Monday, a bridge breach targeted the layer 1 blockchain QANplatform, leading to the loss of roughly $1 million in QANX tokens.

    In addition, we would like to draw your attention to the fact that on Tuesday night, $100 million in liquidity was lost from Solana's well-known Mango Markets trading protocol as a result of a rogue trader manipulating spot token prices in order to borrow all of the protocol's assets in order to cover a position.