Claim Giveaway Token Proof of Reserve

Top Cryptocurrency news: $2 billion in cryptocurrency stolen from cross-chain bridges this year: Report

05-Aug-2022 By: Sudeep Saxena
Top Cryptocurrency n

According to a fresh report, cross-chain bridge attacks accounted for 69 percent of the crypto stolen in 2022, equivalent to $2 billion in losses.

On Tuesday, a blockchain analytics firm released a report stating that there had been 13 distinct token bridge attacks this year, the most recent being the $190M Nomad Bridge exploit.

The Ronin Bridge Attack in late March saw $624 million in Ether and USD Coin stolen, making Q1 2022 by far the quarter with the most crypto stolen since 2021.

Cross-chain bridges, also known as blockchain bridges, are used to transmit cryptocurrencies from one blockchain network to another.

According to reports, while bridge implementations differ, users often deposit tokens from one chain to the bridge protocol, which are then locked into a contract. The user is then given the equivalent of a parallel token in another chain.

Bridge vulnerabilities

As per the reports, bridges are frequently targeted because they provide a central storage place for funds that support the 'bridged' assets on the receiving blockchain.

According to some experts, the effective bridge design is still in its early phases, and some developers still have a limited grasp of security procedures, making their protocols vulnerable to hacking.

James Prestwich, the founder of Nomad, predicted that it would take at least another year or two before chain security models were sufficiently familiar to enable the development of protections as a standard in a video posted on Twitter on July 22—nearly two weeks before the most recent attack.

According to Reports, exchanges were formerly a preferred target of hackers, but developments in security standards have resulted in a decline in successful cyber attacks.

The blockchain analytics group has emphasized that cryptocurrency services, such as bridges, should start investing in security updates and training as soon as possible.  

Read also: Top cryptocurrency news: RUNE Technical Analysis: Rune Chart Indicates a 20 percent Increase Before the Next Correction

Related News
Related Blogs