Blockchain specialist Chainalysis reports that at least $US718 million has been stolen so far in October alone by hackers from cryptocurrencies. That takes the gross stolen in the year past $US3 billion and on course to be a record for the total value hacked. The targets are predominantly decentralized finance (DeFi) protocols deploying software-based algorithms for crypto investors to bypass a central intermediary. Unfortunately, the security for DeFi has not grown with the sophistication of hackers.
What we have seen is an increasing number of hackers exploit weaknesses in the security, coding and structure of DeFi marketplaces.
“After four hacks yesterday, October is now the biggest month in the biggest year ever for hacking activity, with more than half the month still to go. So far this month, $718 million has been stolen from #DeFi protocols across 11 different hacks.” Chainalysis said Thursday on Twitter, adding that bridges between blockchains are a big vulnerability too.
Two major exploits have hit the crypto sector of late.
- A heist whereby a hacker stole about $US100 million from DeFi service Mango by manipulating the price of its token. The thief wiped out depositors on the platform in the process.
- Two million Binance Coins, equivalent to nearly $US570 million last week were effectively minted and taken by a hacker. About $US100 million wasn’t recovered, while the rest was frozen, according to a Binance statement.
Cross-chain bridges remain a major target for hackers, with 3 bridges breached this month and nearly $600 million stolen, accounting for 82% of losses this month and 64% of losses all year.
From the TradersCommunity News Desk