October Turns Out As the Worst Month for Cryptocurrency Hacks in 2022

For a long time, the Cryptocurrency sector has been plagued by hackers. The nature of the cryptocurrency hacks, though, has shifted. The Oct has already seen two massive hacks.

13-Oct-2022 By: Anirudh Trivedi

We haven't yet completed the first half of October, and this month is already shaping up to be the worst month for cryptocurrency hacks in 2022.

So far this month, crypto hacks have cost more than $718 million. The total value hacked in October has already surpassed the figures from March 2022.

It's worth noting that the entire amount stolen comes from a range of DeFi protocols. According to a blockchain analytics firm:

“After four hacks yesterday, October has become the worst month in hacking history, with more than half of the month left to complete. This month, $718 million has been stolen via DeFi protocols across 11 different breaches.”

As per sources, at this rate, 2022 will easily surpass 2021, the year with the most crypto hacks on record. So far in 2022, hackers have stolen more than $3 billion from 125 hacks that have occurred this year.

DeFi Protocols Most Vulnerable to Crypto Hacks

For a long time, the cryptocurrency sector has been plagued by hackers. The nature of the hacks, though, has shifted. Back in 2019, centralized exchanges were the most vulnerable to hacking. However, over the past year, decentralized finance (DeFi) exchanges have been the most vulnerable to cryptocurrency hacks.

As per reports, “Cross-chain bridges continue to be a popular target for hackers, with three bridges compromised this month and approximately $600 million stolen, accounting for 82% of losses this month and 64% of losses overall.”

This month has already seen two massive hacks totaling more than $100 million in cross-bridge attacks. Hackers recently stole over $100 million in BNB Coins by exploiting a cross-bridge connecting the BNB Beacon Chain (BEP2) and the BNB Chain (BEP20 or BSC).

Similarly, Mango Markets, a Solana-based DeFi protocol, lost more than $100 million in the latest hack earlier this week. DeFi protocols must improve their game as hackers become more competent at exploiting flaws in DeFi marketplace security, code, and structure.

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