Tuesday, February 7, 2023
HomeDeFiDefi Security Losses Increased By 47.4%, Reaching $3.64 Billion

Defi Security Losses Increased By 47.4%, Reaching $3.64 Billion

Decentralized finance (DeFi) attacks across blockchains globally were estimated to amount to $3.64 billion in 2022, according to research that was released on January 5 by the Chinese blockchain security company LianAn Technology.

 When compared to the loss of $2.44 billion that was recorded in 2021, this represented an increase of 47.4%. The number of instances skyrocketed in spite of a precipitous 80% decrease in the overall amount locked in DeFi throughout the course of the year.

The amount of cash lost due to the hacking of cross-chain bridges was the largest in the category, totaling $1.89 billion over 12 instances. This was the biggest amount lost in this category. In general, the bulk of vulnerabilities were carried out against Ethereum, BNB Chain, and Solana.

The audited projects were responsible for 51.5% of the significant occurrences that happened in 2022, while the non-audited projects were responsible for 48.5% of the notable incidents.

According to LianAn, a total of 38.7% of the stolen assets, or $1.40 billion, were laundered via the use of the cryptocurrency mixer Tornado Cash. During the course of the year, a total of only $289 million worth of cash was recovered. On the other hand, this figure is probably lower than it really is since some recoveries have not been made public in accordance with the wishes of law enforcement.

The total amount of global blockchain-related criminal activity (excluding financial crimes) in 2022 was $13.7 billion. First place on the list was taken by instances of money laundering with a total loss of $7.33 billion, followed by DeFi exploits with a total loss of $3.6 billion, multi level marketing schemes with a total loss of $1.0 billion, and fraud with a total loss of $830 million. There were 243 instances of fraud and rug pulling during the time period in question, resulting in a total loss of $425 million.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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