2022 became the year of rampant encryption Hacker attacks, with losses exceeding $3 billion

Despite the overall slump in the cryptocurrency market in 2022, it has been a bumper year for hackers. According to data platforms, at least $718 million has been stolen since October. Even more shocking is that, so far this year, the total losses in the encryption industry due to 125 hacker attacks have exceeded $3 billion, likely setting a new historical record.

Unlike previous years, in 2022, the main attack targets of hackers have shifted from exchanges to DeFi protocols. These protocols are typically deployed on public chains and allow users to conduct transactions, loans, and other operations without intermediaries. Hackers exploit security vulnerabilities in the code and structure of the DeFi market to carry out their attacks.

October became the most active month for hackers in 2022, during which cross-chain bridge vulnerabilities triggered a huge crisis. Only 3 cross-chain bridges were attacked, resulting in losses of nearly $600 million, accounting for 82% of the cryptocurrency losses for that month and 64% of the annual losses. On October 12, a decentralized exchange platform was attacked by hackers, resulting in losses of up to $115 million, further disrupting the cryptocurrency industry.

In the top ten cryptocurrency attacks of 2022, hackers stole a total of over $1.7 billion in funds. Cross-chain bridges became the highest target for stolen funds, with several well-known projects suffering significant losses, ranging from $100 million to $540 million. The most recent cross-chain bridge attack occurred on October 7, when the official bridge of a well-known public chain was hacked, and approximately $100 million in funds could not be recovered.

It is worth noting that some hacker groups supported by certain countries have also begun to target DeFi platforms. Earlier this year, data showed that hacker groups linked to North Korea stole approximately $1 billion worth of encryption from DeFi protocols.

In the face of such a severe security situation, participants in the encryption industry urgently need to find more effective security solutions to protect user assets and maintain the healthy development of the industry.