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DeFi and NFTs plagued by hacks worth millions in this time frame: Analyzing…

2min Read
Euler Finance receives message from hacker via Ethereum, but no clarity yet

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  • DeFi remained a major target for bad actors in the crypto market, with total losses exceeding $20 million.
  • The crypto industry also needs to be cautious of bridge attacks, which became popular last year.

Decentralized finance (DeFi) remains a major target for bad actors in the crypto market throughout February 2023, with total losses exceeding $20 million. Data from DeFiLlama demonstrated the scope of the damage, which showed that most attacks were carried out using compromised private keys.

Source: DeFiLlama

Recent high-value hack attacks included those on the dForce network, Platypus Finance, and Orion. These attacks are related to protocol logic flaws, though at least one rug pull has occurred.

Flash loan attacks continue to pervade the list of recent hacks, showing that it remained a weak point for the DeFi market. Though the attacks have lower individual values compared to last year, the number and cumulative value of these attacks hardly painted a pleasant picture.

DeFi attacks are unlikely to dissipate and may even rise. This is due to hacking groups adopting new tactics and targeting more popular sectors, such as NFTs. Hackers frequently target NFT marketplaces or create phishing attacks.

According to the Beosin Global Web3 Security Report 2022, hackers stole over $47 million off NFTs.

Due to their exposure and popularity, popular collections, such as the Bored Ape Yacht Club [BAYC], are frequently targeted.

2022 plagued by crypto hacks

2022 was a difficult year for the cryptocurrency industry; the year was plagued not only by the demise of several exchanges but also a large number of crypto hacks. Chainalysis reported that over $4 billion was stolen off DeFi platforms last year. This was the highest yearly value yet, indicating that more action is needed in this area.

The crypto industry also needs to be cautious of bridge attacks which became popular last year. North Korea-based Lazarus Group carried out crypto hacks worth approximately $1.7 billion last year. The exploit of Axie Infinity’s Ronin Bridge was one of its major attacks, which resulted in the loss of nearly $650 million.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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