DeFi Hacks Fall by a Quarter as Centralized Exchanges Get Fleeced the Most
- Barbara StreisandOriginal
- 2024-10-02 00:42:15340browse
It looks like the DeFi community got the message. In recent years, decentralised finance projects have been a top target for cybercriminals and hackers
DeFi hacks fell by a quarter in the first nine months of 2024 compared to all of 2023, according to data from TRM Labs.
However, the theft of $2.1 billion in digital assets in the first three quarters of 2024 has already exceeded all of 2023 by 5%.
Ari Redbord, global head of policy and government affairs at blockchain intelligence firm TRM Labs, told DL News that they have seen hack hauls double in 2024, as of September 30, compared to the same period in 2023.
Redbord said crypto hacks are now occurring at a record-setting pace, with investors losing $3.8 billion in 2022, according to TRM Labs.
According to web3 security firm Cyvers, hacking incidents involving centralised exchanges and custodians have grown about 1,000%, to $401 million, over last year.
Most of those losses came from the DMM Bitcoin Exchange breach where suspected North Korean hackers stole a staggering $305 million from the platform.
The Türkiye-based crypto exchange lost $55 million in June and other affected platforms include Lykke and Rain Exchange.
Those CEX losses share a common theme — an attack on the platform’s infrastructure that ultimately exposed the private keys of their crypto wallets.
Access control Regardless of the key management strategy used, access control is a major concern and web3 security experts previously warned of gaps existing in the security models being used by crypto companies.
“Attacks have evolved their tactics to exploit these weaknesses, capitalising on the gaps in access control and leveraging advanced techniques like phishing and social engineering to gain unauthorised access,” Meir Dolev, chief technology officer of web3 security outfit Cyvers, told DL News.
Many CEX hacks from crypto’s pre-DeFi era bore hints of insider involvement. Third-party key managers became the solution to rogue employees leaking private keys to hackers.
Still, Dolev said these private key custody protocols can be just as vulnerable.
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