At the beginning of August, a hacking of nearly $200 million in cryptocurrency took place. Another cyberattack of about $2 billion in cumulative losses this year. Indeed, the number of these thefts is already a record since the advent of virtual currencies in 2009, and this poses a real security problem. Cryptocurrency piracy is reaching uncontrollable proportions. And if nothing is done, the whole industry could collapse.
Theft of cryptocurrencies: numbers that send shivers down your spine
In 2021, many acts of piracy have been recorded. The list could be even bigger this year. According to a study conducted by Atlas VPN, Nearly $2 Billion in Crypto Stolen by Cyber Criminals. This is an alarming situation, especially since these figures only concern the first half of 2022. Some ecosystems are also more targeted than others. The analyzes carried out draw up a listing of those who are most vulnerable. Thus, Ronin ranks in pole position with a significant loss of nearly $600 million.
In general, the most targeted blockchain remains Ethereum. On 32 events, it shows losses of a billion dollars. Besides Ethereum, Solana is also a prime prey with losses estimated at nearly $383 million. More than 175 events have taken place since January, including 96 between July and August 2022.
Why is crypto hacking growing so fast?
If hackers are so successful, it’s because there are bound to be a lot of flaws. In the first place, them cryptocurrencies constitute a large reserve of money. We note that these robberies have increased with the Covid-19 health crisis and the disproportionate democratization of digital wallets. If we believe Brenda Sharton of the law firm Dechert, a certain technology would facilitate these thefts: the inter-chain bridges. For example, when an exchange is between two blockchains like Bitcoin and Ethereum, the risk increases.
Then, the hacking of cryptocurrencies is also explained by the total or almost total absence of menstruation. Since the crypto industry is growing rapidly, some companies want to keep up. And can sometimes, in a hurry, neglect essential criteria such as security. In contrast, banking institutions and top start-ups are investing hundreds of millions in cybersecurity. However, these thefts cause many cybersecurity companies to refuse to get involved in the cryptocurrency market.
Finally, in addition to the two major reasons, we can cite the following secondary reasons:
- Cryptocurrency hacking is less complex and the fallout can be in the millions of dollars;
- Some targets are often poorly equipped or have limited protection;
- Stealing access and sensitive information can be done on a larger scale on a blockchain.
Conclusion
In sum, regardless of the reasons, cryptocurrency piracy continues to cost the industry dearly. Initiatives such as those taken by EU countries, including having a unified law on the regulation of cryptocurrencies, are to be welcomed. More will have to be done, because one thing is certain, crypto theft is not going to stop anytime soon. Companies will have to refine their cybersecurity.
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