MEXCThis Crypto Sector Made the Biggest Losses In Crypto Thefts So Far in 2022
Cryptocurrency market hacks have been on a rampant rise so far this year in 2022. As per the latest Chainalysis report, the decentralized finance (DeFi) sector has been the biggest victim of hackers.
So far through July 2022, $1.9 billion worth of digital assets have been stolen. This is more than 50% in comparison to the same period last year. Chainlaysis notes that this trend doesn’t seem to reverse anytime soon.
Earlier this month, nearly $200 million were stolen from cross-chain bridge protocol Nomad. Similarly, several Solana wallets reported a loss of over $5 million in early August.
Chainlaysis adds that there’s a stunning rise in the funds stolen from DeFi protocols. Furthermore, North Korea’s notorious Lazarus Group is behind a huge majority of the funds stolen from DeFi protocols. As per the Chainalysis report, North Korea-affiliated groups have stolen over $1 billion from DeFi protocols through July 2022. The report further notes:
We shouldn’t expect theft to drop based on cryptocurrency market movements the way scamming does — as long as crypto assets held in DeFi protocol pools and other services have value and are vulnerable, bad actors will try to steal them.
The only way to stop them is for the industry to shore up security and educate consumers on how to find safe projects to invest in.
Dropping Crypto Scam Revenue
Interestingly, Chainalysis notes a sharp decline in the total scam revenue so far in 2022. At $1.6 billion by July 2022, the total scam revenue is 65% less than it was by the end of July 2021. A majority of this drop comes from declining prices of crypto assets.
Also, with the market crash, there are less enticing schemes of passive returns leading to lesser potential victims. The Chainalysis report adds: “The biggest scam of 2022 so far has netted $273 million worth of cryptocurrency, just 24% of Finiko’s $1.5 billion revenue through the end of July in 2021”.
At the same time, the darknet scams have been on a major decline after the shutdown of the Hydra darknet earlier this year.
- Bitget Lists Common Token, Launchpool Offers 36M COMMON in Rewards
- Coinbase Prime Taps Figment to Boost Institutional Staking on Solana, Cardano, and Sui
- Here’s Why Zcash (ZEC) Price Tanked 10% Today Following 500% Rally
- Litecoin Price Jumps, What’s Behind the Sudden Rally? (28 oct)
- Metaplanet Stock Surges 10% on Share Repurchase, Capital Allocation Policy
- Pi Network Patterns Point to More Gains Despite Manipulation Claims
- HBAR Price Poised to Hit $0.30 as Canary Capital ETF Starts Trading.
- Will Solana Price Rally to $300 as Bitwise Launches $BSOL ETF?
- XRP Price Chart Patterns Hint at 2017-Style Breakout as Evernorth Acquires $1B XRP Ahead of Nasdaq Debut
- Cardano Price Eyes 80% Rally as x402 Upgrade Sparks Hope for AI Payment Expansion
- Polymarket Traders Bet Ethereum Price to Hit $5,000 as Bullish Pattern Forms
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
