• According to Chainalysis, hackers stole a record $3.8 billion in 2022.
• Most of the funds were stolen from DeFi protocols via bridge exploits targeting vulnerabilities in code.
• A new crypto mixer called Sinbad has become hackers‘ go-to protocol to wash stolen funds after the demise of Tornado Cash.
Hackers Stole Record Amount in 2022
According to the latest report from blockchain analysis firm Chainalysis, hackers stole roughly $3.8 billion during 2022, making it a record year for stolen digital assets. Most of these funds were stolen from DeFi protocols via bridge exploits targeting vulnerabilities in code, with North Korea-linked hackers Lazarus Group stealing around $1.7 billion out of the total over the year.
DeFi Protocols Targeted By Hackers
Chainalysis reported that 82.1% of the amount was stolen from DeFi protocols, mainly via bridge exploits targeting vulnerabilities in code. The biggest exploit of the year was Axie Infinity’s Ronin bridge hack in March 2022, which saw hackers exploit the bridge and steal $612 million before moving it through mixers like Tornado Cash and Chip Mixer. In October 2022 alone, hackers managed to steal around $775.7 million from various DeFi protocols – making it the worst month for hacks throughout the entire year.
Lazarus Group Responsible for Bulk Exploits
Cybercriminal syndicate Lazarus Group is believed to be behind most of these attacks; an organization which has already been linked to North Korea by US authorities such as the FBI due to their advanced tools and tactics when carrying out cyberattacks on cryptocurrencies and exchanges worldwide.
Sinbad Crypto Mixer Used For Washing Funds
After authorities cracked down on popular crypto mixer Tornado Cash following its involvement in several high-profile hacks, Chainalysis noted that new crypto mixer Sinbad has become hackers‘ go-to protocol for washing their stolen funds without detection by law enforcement or other third parties tracking their transactions online.
Increased Security Needed To Prevent Further Exploits
As more money continues pouring into decentralized finance (DeFi) projects over time and more potential weaknesses are exposed within individual protocols due to a lack of sufficient security measures being implemented by developers, it becomes increasingly important for project teams to focus on increasing security standards across all platforms if they want to prevent further attacks from taking place in future months and years ahead .