Sign Up on 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.
- Expert Predicts 138% Shiba Inu Rally as SHIB Futures Listing Opens Spot ETF Path
- Bitcoin Will 200x From Here, Twenty One Capital CEO Says as BTC Breaks $117K After Fed Rate Cut
- BNB Chain Takes Lead in RWA Tokenization, Expert Sees BNB Rally to $1,300
- Grayscale’s GDLC Fund Holding SOL and ADA Gets SEC Nod for NYSE Debut
- Crypto Market Rally: Will Bitcoin Catch Up With S&P 500 Gains After Fed Rate Cut?
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
- SHIB Price Forecast: Taker Buys Lead as Developers Counter Shibarium Exploit
- Solana Price Set for a 25% Jump as Open Interest Nears a $20 Billion Milestone
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.
