Urgent: $ 1.9 billion disappeared from digital currencies .. Where did it go?

Urgent: $ 1.9 billion disappeared from digital currencies .. Where did it go?

Hacking cases by people known as white hats are spreading in the cryptocurrency market day after day, whether it is through hacking cryptocurrency protocols or coin accounts.

According to a recent report, the value of cryptocurrency thefts has jumped, with the amount stolen in crypto thefts increasing by 60% this year to $1.9 billion according to Chainalysis.

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hacks

It is estimated that $1.9 billion was lost due to the hack in January-July this year, up from $1.2 billion last year, and this upward trend is also likely to continue, given the increasing intensity of the hacks.

Chainalysis said the amount stolen in crypto thefts rose by 60% this year according to a report, which estimated that the industry lost $1.9 billion in hacks from January to July of this year.

“No area of ​​crypto-based crime is violating the 2022 trend of lower revenue like stolen funds,” the blockchain analytics firm said in a recent post.

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upward trend

The institution said the upward trend is also likely to continue, given the increased intensity of cryptocurrency hacks this year.

According to data from the blockchain analytics firm, $192 million was stolen this month in a hack on the Nomad Bridge alone, followed by the theft of another $200 million from 8,000 Solana wallets that were hacked later in the week.

Much of that is due to DeFi protocols, which hackers have been targeting since 2021, according to Chainalysis.

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How does it happen?

Blockchain analytics firm Chainalysis says the protocols, which are programs that connect crypto transactions without an intermediary, can make users vulnerable to hackers, because they are based on open source code that can be studied by potential thieves before the theft is carried out.

The research firm added that cyber attacks were largely at the hands of North Korean hackers, adding to the overall value of thefts this year.

US authorities have alleged that they stole at least $1 billion in cryptocurrency hacks and laundered money via Tornado Cash, the so-called hybrid cryptocurrency that the Treasury Department imposed this month.

Chainalysis estimated that these thefts likely originated from hackers who found income through DeFi protocols.

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For landing benefits

Surprisingly, cryptocurrency scams were expected to register an even greater increase after the big spike in 2021.

Blockchain analytics firm Chainalysis says this is in line with the drop in the price of Bitcoin, which has fallen by nearly 50% since the beginning of the year.

Nobody likes the bearish cryptocurrency market, the analytics firm added, but the bright side is that illicit crypto activity has declined along with legitimate activity.

The research firm warned of a rise in thefts and pointed to the need for increased regulation in the blockchain, and pressure on regulators to tighten restrictions on the crypto sector this year.

The Securities and Exchange Commission has announced that it will nearly double the number of employees at its crypto unit, while a new plan by the US Senate will establish the Commodity and Futures Trading Commission as the primary regulator of the crypto industry.