Global cybercriminals have managed to steal an estimated $3.8 billion worth of cryptocurrency since the start of 2022, according to a firm that tracks cybercrime. This figure is significantly higher than the $3.3 billion stolen in 2021.
In a report released last week, researchers from Chainalysis dubbed 2022 as “the biggest year ever for crypto hacking” and indicated that North Korea has been responsible for a large portion of the thefts. This was further confirmed by a confidential United Nations report that was reported by Reuters on Monday.
The surge in crypto theft can be attributed to the fact that many investors were enticed to invest in digital assets such as bitcoin, ether and dogecoin during the coronavirus pandemic in the hopes of making a fortune. However, some of these investors ended up losing their investments to hackers who had access to platforms with inadequate security.
According to the Chainalysis report, North Korean cybercriminals managed to break their own record for the most cryptocurrency stolen in one year with $1.7 billion worth of thefts in 2022. This amount is particularly significant considering that North Korea’s total exports in 2020 amounted to only $142 million.
The report also revealed that exchanges were the primary targets for hackers as they accounted for $2.3 billion worth of stolen funds. Crypto fraudsters also took advantage of platforms with inadequate security to steal funds from unsuspecting investors.
The report also showed that crypto theft ebbed and flowed throughout the year. As the crypto market continues to expand, lawmakers are calling for stricter regulations to protect investors. This need for regulation was further highlighted by the sudden bankruptcy of FTX Trading, the third-largest crypto platform, in November.
Cryptocurrency theft reached an all-time high in 2022, with criminals stealing over $3.8 billion from crypto investors, according to a report from blockchain monitoring firm Chainalysis. The report noted two major spikes in theft in March and October, with the latter being “the biggest single month ever for cryptocurrency hacking”.
In total, 32 attacks cost investors $775.7 million. Most of the funds were taken from decentralized finance (DeFi) platforms, with 82% of the stolen money coming from these sources. Criminals have been able to exploit DeFi platforms due to their lack of prioritization when it comes to security.
The biggest attack occurred in October when $586 million was stolen from a private party’s cross-chain bridge used to transfer funds from one blockchain to another. Binance, the company that was hacked, was able to minimize the loss.
David Schwed, Chief Operating Officer at blockchain security firm Halborn, explained that large protocols should have 10 to 15 people in the security team, each with their own area of expertise. “The DeFi community generally isn’t demanding better security — they want to go to protocols with high yields. But those incentives lead to trouble down the road,” he said.
