Q1 Record-Breaking Crypto Theft

4/1/2022

Tech

0 min read




Image Credit: XResh (Pixabay)

Blockchain Hackers Break Previous Quarterly Theft Record

Crypto hackers made off with $1,307 million during the first quarter of 2022. They Averaged over $20 million per hack in 73 attacks on the blockchain ecosystem. A single attack on Ronin accounted for almost half the amount, with Solana and Binance smart chain ecosystems accounting for more than a third of that total. We take a look at the top targets, methods, most successful hacks, and trends that played out over the first quarter of 2022.

Targets

NFTs were the top target, with the highest number of hacks at 20, netting a near-$49 million loss. Some attackers used phishing attacks on Discord to steal victims’ NFTs; other scammers launched NFT projects and then disappeared with buyers’ funds without delivering.

Exchanges were hacked out of $42 million in three events. The Ethereum ecosystem experienced 16 events where attackers made off with $25 million.

Hacks of the Solana and BSC networks led to almost $500 million in stolen funds, with $400 million taken from Solana and $100 million from Binance smart chain.

Record Highs

As the blockchain industry expands, so has the opportunity and reward for those interested in personal gain by undermining the substantial protections. The market is now a larger target with more rewards to be had. Measuring only first-quarter events, in 2018 cryptocurrency-related blockchain hacks numbered only five. During the first quarter of 2019, hacks numbered 62 (1140% jump). It seems hackers were focused on the coronavirus during the first quarter 2020, because the number of events dropped to 13. A year later, in the first quarter of 2021, blockchain breaches and scams rose to 33 (154%).

This brings us to the quarter that just ended. As mentioned earlier, Blockchain-related hack events have reached an all-time high of 72 in Q1 2022. It represents a 118% increase in hacks compared to the first quarter of 2021.

Currently

On March 23rd, a hacker accomplished one of the largest heists in crypto history. The Ronin loss of $625 million worth of ether and stablecoin USDC occurred after hackers were able to access five private keys used to validate transactions in order to forge bogus withdrawals on March 23, resulting in 173,600 Ethereum and 25.5M USDC drained from the Ronin bridge in two transactions.

Blockchain project security is one concern a person investing in cryptocurrency should consider. Most blockchain-related hack events happen because cybercriminals exploit flaws in the project code. Successful thieves can cause massive headaches and losses to creators and investors on crypto platforms.

Paul Hoffman

Managing Editor, Channelchek

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