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Crypto Hacks Drained Over $1 Billion From DeFi Protocols In 2022 So Far: SlowMist Report

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Summary:

  • Some seven protocols suffered crypto hacks as of June 30, 2022.
  • These protocols were cross-chain bridges and DeFi projects per SlowMist’s report.
  • Hackers stole north of $1 billion from these security breaches.
  • More than $2.4 billion from hacks and exploits was deposited into the crypto mixing service Tornado Cash.
  • This accounts for over 70% of all proceeds from crypto hacks in 2022 so far.
  • Exchanges lost around $77 million from security-related issues.

The latest crypto report from SlowMist showed that over $1 billion was stolen from decentralized finance (DeFi) protocols and cross-chain bridges in several security breaches over the first half of 2022.

According to the blockchain analytics firm, the figure stood at $1.043 billion as of June 30, 2022.

The report noted that these crypto hack proceeds were drained from seven cross-chain bridge protocols that experienced security issues and exploits between January and June. March’s $600 million hack on the Ronin network, one of the largest hacks in crypto history, topped the list from the report.

As previously reported, the sidechain built by Sky Mavis for its Axie Inifitiy blockchain game suffered a cyber attack. The crypto hackers were later identified as Lazarus, a North Korean group known for pulling off high-profile exploits.

Crypto hacks involving Wormhole, Optimism, and Harmony to name a few were also included in the Slow Mist report.

Crypto Hackers Leverage Tornado Cash Throughout First Half Of 2022

Data from the analysis also revealed that the crypto mixing service Tornado Cash was leveraged several times after DeFi protocols were hacked. A mixing platform obscures the source of digital assets when deposited. Protocols like Tornado Cash leverage codes to pool digital assets together and make transaction origins difficult to trace.

Wednesday’s report said that over $2.4 billion worth of crypto hack proceeds were deposited into Tornado Cash. This accounts for 74.6% of all funds stolen from exploits on DeFi projects and cross-chain bridges.

Exchanges Lose Less Than $100 Million In Crypto Hacks And Security Breaches

Notably, the report highlighted that crypto exchanges have experienced fewer losses from security issues. Total funds exploited from exchanges stood at around $77 million, per the report. The report covered data from attacks on decentralized exchanges like Uniswap and KLAY Swap.

Centralized trading platform Crypto.com was also mentioned.

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