Chainalysis: Record $3.8B Stolen in Crypto Hacks

The biggest targets for crypto hackers in 2022 were Decentralized Finance (DeFi) protocols, accounting for 82% of the total $3.8 billion in digital assets stolen last year, according to on-chain data analysis firm Chainalysis.

A Twitter thread and accompanying blog post by Chainalysis preview part of its upcoming 2023 Crypto Crime Report.

According to Chainalysis, the proportion of crypto funds stolen from DeFi protocols increased from 73% in 2021.

Of the $3.1 billion stolen from DeFi protocols, 64% was due to exploits of cross-chain bridges.

“Bridges are an attractive target for hackers because the smart contracts in effect become huge, centralized repositories of funds backing the assets that have been bridged to the new chain — a more desirable honeypot could scarcely be imagined. If a bridge gets big enough, any error in its underlying smart contract code or other potential weak spot is almost sure to eventually be found and exploited by bad actors,” according to the post.

The report also highlights the growing role of North Korea-linked hackers, who stole $1.7 billion worth of crypto in 2022 (more than 10x the value of North Korea’s exports in 20220).

What is Chainalysis:

Chainalysis is a blockchain data platform that provides data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 70 countries. Their data powers investigation, compliance, and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases and grow consumer access to cryptocurrency safely.

Where to find Chainalysis:

Website | Twitter | LinkedIn | YouTube |