DeFi Suffers More Than $7 Billion (73%) From Crypto Hacks In 2021

2021-12-28 22:13:09
Not A Good Year For DeFi

According to the report from the leading blockchain ecosystem security company SlowMist, out of the $9.8 billion total stolen funds on the blockchain in 2021, more than $7 billion are due to crypto hacks on the decentralized (DeFi) industry, or 73%.

Moreover, the report by SlowMist reveals a total of 231 attacks on the blockchain in 2021. And out of this number, 170 incidents are directly linked to various DeFi operators from the decentralized finance industry.

Some of the attacks include fifteen crypto exchanges, three eWallets, thirty-five various hacks and public blockchain hacks.

Consequently, the numbers say that a whopping 73% of all crypto-related hacks are in direct connection with the DeFi sector.

Billions Of Dollars In Damages

One of the biggest such attacks in the history of the DeFi industry, is the $610 million attack on PolyNetwork in August.

Eventually, the hacker returned the stolen funds, and PolyNetwork even offered him a job as Chief Security Advisor.

Coinbase is another big name that was a victim of crypto-hackers. In October, the number one U.S. crypto exchange reported that 6.000 customer accounts were hacked as a result of a bug in the system.

Consequently, Coinbase returned the missing funds to its users, but that incident seriously shook the reputation of the exchange at the time.

Furthermore, the crypto exchange Bitmart was also a victim of one of the biggest crypto-exchange heists in 2021. In particular, at the beginning of December, Bitmart suffered a $200 million crypto hack.

And just as in most DeFi, and crypto hacks in general, the attackers used Tornado.cash to exchange the funds, and simply disappear without any trace.

Better Security In 2022 – More Attacks

Consequently, the fact that out of $9 billion stolen funds from crypto hackers $7 are from the DeFi industry, should definitely worry all blockchain operators.

Due to this dire situation, 2022 is the year where we should see great improvements in the blockchain security sector.

On the other hand, the daily increase in new crypto enthusiasts means higher trading volume and eventually bigger profits.

And considering the predictions that crypto will blow up in 2022, the attacks on DeFi operators will only increase in both volume and frequency.

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