DeFi Education NEWS

2022 Set To Be The Biggest Year For Digital Assets Heists

In 2022, cryptocurrency had its worst year ever in terms of hacks. The majority of these hacks took place on the Defi platform, which saw one-third of all such activities in 2021.

Although cryptocurrency prices were crashing in 2022, digital currencies continued to be cash vending machines for hackers. According to blockchain analytics firm, Chainalysis, investors have lost over $3 billion to hackers across approximately 125 hacks in 2022, which is expected to surpass 2021 as the largest year for hacking on record.

The Following are some of the biggest hacks in 2022:

1. Ronin Network {$625 Million}

From the Ronin Network, a blockchain for the computer game Axie infinite, hackers stole around $625 million in Ether and USD coins. In two transactions from the Ronin bridge contract, the attacker created phony withdrawals using compromised private keys.

The exploit was found in March after one user failed to withdraw 5,000 Ether a week earlier. 173,600 ETH and 25.5 million USDC were stolen by the hacker. This heist is regarded to be the biggest Defi hack in Ronin Network.

2. Wormhole Network {$325 Million}

An unknown hacker exploited a vulnerability in the wormhole network, a protocol that allows users to move cryptocurrencies and NFTs between different blockchains, in February 2022. Without using any collateral, the hacker created 120,000 wETH worth around $325 million.

Elliptic attributed the vulnerability to Wormhole’s disregard for “guardian” account validity, which allowed the attacker to generate 120,000 ETH without any underlying Ethereum.

The hacker then exchanged 93,750 wETH for Ethereum and the remaining part for Solana. The total loss was estimated to be around $325 million.

3. Nomad Bridge {$190 million}

An unknown hacker exploited Nomad and stole about $190 million in the summer of 2022 by taking advantage of a flaw in their code. The attack was initiated when Nomad’s code changed. Part of the smart contract was marked as being active each time a user performed a transaction.

Because of this, malevolent users were able to withdraw more money than they had put in. Hackers persisted until they had removed about $190 million worth of cryptocurrency from the bridge. After begging users to return the payments, Nomad was able to recover almost $20 million.

4. Beanstalk Farms {182 million}

A hacker stole more than $160 million in cryptocurrency from Beanstalk farms, an Ethereum-based stablecoin project, around April 2022. The hacker obtained a 67% voting share in Beanstalk by using a flash loan via the Aave protocol to borrow approximately $1 billion in cryptocurrency.

PeckShield claims that the attacker voted to transfer $182 million by using the majority vote governance system in Beanstalk.

The hacker was able to send the Beanstalk tokens to its wallet thanks to this supermajority.

5. Horizon Bridge {$100 million}

Hackers attempted a second attack on the Horizon Bridge in June, only days after the Elrond vulnerability, costing close to $100 million.

The Harmony, Binance Smart Chain, and Ethereum blockchain networks are joined via the Horizon cross-chain interoperability platform. PeckShield revealed that several tokens worth more than $98 million were exchanged for ether on the network run by Harmony.

Over 50,000 user wallets were affected by the breach. The hackers later used Tornado Cash to send $35 million.

Lawal Mus'ab Olayinka is a Blockchain Community Manager and Content Writer. He has worked for several blockchain startups and companies, including Quidd and Unilab, and is currently employed as a Community Manager at Tokensuite. Lawal has been a Community Co-builder at Poly Network for over a year. He is a content writer and co-founder at Coinsplug.

1 Comment

  • HAMZNET January 2, 2023

    Honestly the issue of security has to be taken good care of

Leave a Reply

Your email address will not be published. Required fields are marked *