In the first 7 months of this year, cryptocurrency hacking losses skyrocketed, reaching IDR 28 trillion.
Although the crypto industry has grown rapidly, crypto hacking has not been well-stopped.
Hacking is one of the most common cybercrimes in the crypto industry, due to various background things such as system security gaps, as well as users who are less careful and educated.
And again, the biggest contribution to this loss comes from the decentralized financial sector (DeFi).
Losses from crypto hacking
Based on the report Reuterslosses from crypto hacking increased by almost 60 percent, from January to July 2022.
The data comes from a blog post by blockchain analytics firm Chainalysis, whose value has reached US$1.9 billion, equivalent to 28 trillion rupees. During 2021, the value of losses due to the same cybercrime will be around 1.2 billion US dollars.
The figure reportedly stems from the rise in funds stolen from the DeFi protocol, which has become a “regular” occurrence over the past few years.
In the near term, Chainalysis notes that this trend of losses is unlikely to reverse anytime soon. That is, the amount of the value of the loss is likely to continue to increase.
“The DeFi protocol is uniquely vulnerable to hacking, because the code open source they can be studied and modified by cybercriminals looking for exploits, where there can be an incentive for protocols to come to market and grow rapidly leading to deviations in security best practices,” said Chainalysis.
The blockchain analytics firm also found that the majority of stolen DeFi funds are still linked to “bad actors” from North Korea, one of which Lazar.
It is estimated that Lazarus managed to steal crypto assets worth about one billion US dollars from the decentralized financial protocol.
On the other hand, there has been a decline in the number of crypto scams, along with a decline in crypto asset prices from the beginning of the year to July. It fell more than 65 percent.
In addition, the value of losses from criminal offenses of fraud (fraud) also decreased in the first seven months of this year. It also fell by more than 65 percent, from $4.46 billion in 2021 to $1.6 billion. [st]