North Korean Hacks Target Crypto’s DeFi Platforms

Hacks made off with around $1.9 billion worth of cryptocurrency: Chainalysis
The DeFi protocols standard is still the industry’s primary Achilles’ heel.
According to a research published by a company that specializes in blockchain analysis, the value of assets that have been stolen from cryptocurrency exchanges has skyrocketed this year. This is due to the fact that decentralized finance protocols have become an easy target for attackers.

According to Chainalysis, hackers have made off with digital tokens worth approximately $1.9 billion up until July of this year. This is a 58% increase from the same time period in 2021.
According to the article, “This trend does not appear set to change any time soon,” as there was already a $5 million attack of numerous Solana wallets and a $190 million hack of the cross-chain bridge Nomad in the first week of August.

After a number of high-profile hacks this year, the DeFi protocols, and particularly the cross-chain bridges used to transfer tokens between different blockchains, have emerged as one of the crypto industry’s most vulnerable linkages. According to Chainalysis, since such protocols rely on open-source code, it is simple for criminals to uncover faults or other weaknesses that can be exploited.

According to the findings of the study, “it’s probable that protocols’ motivations to reach the market and grow swiftly contribute to gaps in security best practices.” [Citation needed]

Criminal cryptocurrency activity, on the other hand, appears to be more resistant to falling values of cryptocurrencies than the general market for digital assets as a whole. This is a worrisome indicator. According to the analysis, the number of transactions Chainalysis classified as illegal reduced by 15% from July 2017 to July 2018, but the number of lawful transactions plummeted at a rate that was more than double that of the illicit transactions. In the month of March, hackers stole around $600 million from Axie Infinity’s Ronin bridge, while in the month of June, hackers stole $100 million from Harmony’s Horizon bridge.

Additionally, DeFi protocols have turned into a common target for hacker groups who are sponsored by the state. According to estimations provided by Chainalysis, entities with ties to North Korea have been responsible for the theft of nearly one billion dollars’ worth of cryptocurrency using DeFi protocols so far in 2018.

In spite of the fact that hacks are still a huge concern, Chainalysis found that illegal behavior in other facets of cryptocurrency has decreased significantly. According to the report, fraudulent activities using cryptocurrencies have generated $1.6 billion so far in 2022, which is 65% less than what they generated in 2021. The so-called darknet marketplaces have seen a 43% decrease in revenue this year, primarily as a direct result of the raid that took place in April on the Hydra marketplace.

Advertisement

Read More Cryptocurrency News Here