The Crypto Sector Faces Increasing Cybersecurity Threats
The cryptocurrency sector has become an attractive target for hackers in recent years. According to a report by Immunefi, the Web3 space experienced a staggering loss of over $685 million in Q3, 2023. This represents a significant increase from the $428 million lost in Q2 due to hacks and fraud.
Rise in Malicious Attacks on Blockchain Protocols
Immunefi’s report reveals a 59.9% surge in malicious attacks aimed at illegally obtaining funds from poorly secured blockchain protocols. Out of the total losses, $662 million was lost through hacks across 49 incidents, while $22 million was lost to fraudulent investment schemes across 27 incidents.
Hardest Hit Protocols and Targeted Blockchains
Mixin Network and Multichain suffered the most significant losses, totaling $326 million, making up 47.5% of all losses in Q3. Other protocols like CoinEx, CoinsPaid, Curve Finance, and JPEG’d also fell victim to fund draining by malicious actors. Ethereum-based projects were prime targets, followed closely by Binance-owned BNB Chain.
Involvement of Lazarus Group in Cyberattacks
The notorious Lazarus Group, sponsored by North Korea, was responsible for the highest value of losses, amounting to over $208 million. The group targeted platforms such as CoinEx, Stake, Alphapo, and CoinsPaid.
DeFi Remains Vulnerable to Hacks
Decentralized finance (DeFi) is a sub-sector within the crypto market that lacks central control and allows users direct access to their accounts. This decentralization has made DeFi an attractive target for hackers. In 2022, the DeFi landscape lost $2.8 billion in stolen funds through various methods, including verification process bypass and smart contract exploits.
Hot Take: Cybersecurity Challenges Persist in the Crypto Sector
The increasing losses due to cyberattacks highlight the pressing need for robust security measures within the crypto sector. As the value of digital assets continues to rise, hackers are finding new ways to exploit vulnerabilities. It is crucial for individuals and organizations involved in cryptocurrencies to prioritize cybersecurity and implement proactive measures to protect themselves and their assets from malicious actors.
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