60 percent increase in losses from crypto hacks

Losses from hacking cases involving cryptocurrencies have increased by nearly 60 percent in the first seven months of this year. As of July this year, about $1.9 billion has been lost in such cases. The loss in the same period last year was about $1.2 billion. Funds stolen from Decentralized Finance (DeFi) protocols have increased significantly.

Blockchain analysis firm Chainalysis said in a blog post that hackers are less likely to catch the attack soon. In the first week of this month, about $ 190 million in the hacking of the cross-chain bridge Nomad and about $ 5 million in funds were stolen from the hacking of several Solana wallets. “DeFi protocols are more prone to hacking because their open source code helps cybercriminals to break in,” Chainalysis reported. According to a Reuters report, hackers such as North Korea’s Lazarus Group were responsible for most of the hacking of DeFi protocols. North Korean hackers are estimated to have stolen nearly $1 billion worth of cryptocurrency from DeFi protocols this year.

A large number of DeFi applications are on the Ethereum blockchain. Lending in cryptocurrencies is available through these applications. The market capitalization of cryptocurrencies was around $2.35 trillion at the beginning of this year, which has come down to around $11 trillion by the end of last week. The price of the largest cryptocurrency, Bitcoin, is down about 48 percent year on year. In the last few months, its price has been in the range of $20,000 to $24,000.

A report by the US Cyber Security and Infrastructure Security Agency (CISA) described several North Korean cyber groups as threats to blockchain and crypto firms, including BlueNoroff and Stardust Chollima. Earlier, US authorities had blamed the South Korean hacking group Lazarus for a major cyber attack on the Ronin Network of the Axie Infinity game. The FBI had said that the Lazarus Group was behind this hack. The Treasury Department has banned the address that received the stolen funds. The Lazarus hacking group is controlled by North Korea’s Intelligence Bureau.

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