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Is 2022 the “year of crypto hacks” as this attempt makes it to the “Hacktober” list

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A group of individuals hacked the official Twitter account of cryptocurrency exchange Gate.io, and proceeded with a fraudulent Tether [USDT] giveaway scheme. The hacking effort has put over one million users at risk of losing their crypto holdings.

This unknown group of hackers broke into Gate.io’s Twitter account and changed the website URL. The website was changed from Gate.io to gąte.com. Additionally, the website appeared to be a genuine cryptocurrency exchange but was a fraudulent website modelled on an exchange.

The nitty-gritties of the attempted hack

The fraudulent website aggressively promoted a 500,000 USDT giveaway, requesting visitors to link their wallets (such as MetaMask) to receive the claims. When a user linked their wallet to this bogus website, the hackers obtained access to their crypto holdings and could drain them.

PeckShieldAlert, a Twitter user was quick to investigate the matter and discovered the phishing website. It also went ahead and cautioned users against losing private keys.

2022: The worst year in terms of crypto hacks…

On 13 October, the research firm Chainalysis revealed that October had already become the worst-ever month for crypto-related crimes with over $718 million in overall losses. Funds were stolen from various decentralized finance (DeFi) protocols during 11 different attacks.

According to the report, this year is expected to surpass 2021 as the most prolific year for hacking on record. Through 125 hacks, hackers have made more than $3 billion. Following a $325 million attack on popular cross-chain service Wormhole, a $625 million attack on Axie Infinity’s Ronin bridge, and a $200 million attack on the Nomad bridge also took place.

Decentralized apps that have not been thoroughly audited make for easy and consistent short-term profit for protocols. Poorly protected protocols are easy pickings for hackers who take advantage of their highly vulnerable locks.

Exploiting bridges, a blockchain-based tool, allows users to transact between different networks. It also enables market manipulation. Rogue traders use millions of dollars to move thinly traded markets in their favor.

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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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