Cryptocurrency Attacks are Becoming Costlier to Investors

Panic as Ambitious Cryptocurrency Attacks are Becoming Costlier to Investors

So far, not so good. 2022 has not been a smooth ride for cryptocurrency buyers. However, it is turning out to be a brilliant year so far for thieves. This group of virtual money enthusiasts has already stolen crypto worth approximately $1 billion since the year began.

Crypto.com, Wormhole, and Ronin Networks were robbed in January, February, and March. The attacks resulted in millions of dollars in losses. Cybersecurity experts are certain that hackers attack decentralized Finance, or Defi, from platforms with weak security.

Decentralized Finance, commonly known as DeFi, is designed to operate o public blockchains; this way, they can facilitate the exchange of crypto by users without using a conventional financial establishment like a credit union or a bank.

Mitchell Amador, the CEO of Immunefi, a cybersecurity auditing company, says that crypto users should expect these attacks to continue increasing as many criminal firms are building DeFi hacking skills in the comfort of their homes. In an interview, Amador continued to add that crypto hacks are becoming more attractive because DeFi grows each day.

Recently, an unidentified hacker attacked Beanstalk Farms and stole about $182 million. The attack which happed earlier last month and it’s the fourth-largest attack on DeFi services ever recorded. According to PeckShield, a Chinese blockchain security firm, the hackers used a “flash loan” to identify and exploit the security weaknesses at Beanstalk. A flash loan is an indiscreet loan that overwrites the need for any guarantee from a borrower by using smart contracts, and it requires repayment when the transaction is finalized; normally, it takes a few minutes or even seconds.

A large percentage of the $182 million hacks was drained towards fees on exchange platforms like Uniswap and Aave that the hackers used to carry out their attack. The thief has gotten 24,830 ether and 36 million Bean tokens at the end. Beanstalk officials confirmed that hackers stole around $76 million of users’ crypto assets in a blog post. The firm, which was launched in August last year, has not provided any information on whether it managed to recover the stolen crypto.

PeckShield is certain that the hacker used Tornado Cash, a platform that allows users to transfer cryptocurrency anonymously, to launder the stolen crypto Beanstalk.

In another attack, more than $3 million worth of Bored Ape Yacht Club was stolen by a hacker. The Bored Ape Yacht Club, a famous series of NFTs, was stolen after a cybercriminal hacked into the series’ Instagram account. Bloomberg News reported that BAYC lost four Bored Apes, three Bored Ape Kennel Club nonfungible tokens, and six Mutant Apes in late April. The parent company, Yuga Labs, has not confirmed if they were able to recover the stolen digital assets.

In 2022 hackers have stolen $1.2 billion already, compared to $154 million in the first quarter of 2021. This comes after DeFi lender, Rari Capital just lost $80 million in another carefully orchestrated crypto heist less than 48hours ago. Data from Chinalysis show that in 2020 the total amount of crypto stolen by cybercriminals was $162 million. In a report, the firm says that there has been a significant growth in laundering illicit Finance using DeFi’s protocols. In the report, Chinalysis added that DeFi rules saw the most growth beyond doubt in usage for money laundering at about 1.964%.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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