According to a research report, $1.3 in digital currency was stolen in the first quarter of 2022. The study, published by cryptomonday.de researchers, further highlights that 97% of the stolen funds came from decentralized finance (defi) protocol vulnerabilities.

Defi exploits Lion’s stolen cryptocurrency share account this year

2022 has already the record for stolen cryptocurrencies due to hacks and attacks. Last year, $3.2 worth of digital currency was stolen, and so far, in the first quarter alone, 2022 has recorded more than 40% of the 2021 total. The recorded stolen encrypted data originates from a report published by cryptomonday.de and the study’s author, Elizabeth Kerr. The report’s authors said “these numbers represent a significant spike.”

Report: $1.3 billion in cryptocurrency stolen in Q1 2022, 97% due to Defi exploits

For example, of the $1.3 in digital currency stolen this year, 97% came from Defi protocols. In the first quarter of 2021, only 72% of stolen funds came from Defi, while in 2020, the figure was as low as 30%. Furthermore, most of the thefts in 2022 will come from faulty code bugs, where smart contract bugs have been used to steal stolen funds from defi protocols. The authors say that since the defi environment is open source, anyone can search for bugs and bugs in the defi project’s codebase.

Centralized exchange hacks plummet

The study further detailed that centralized exchanges were popular honeypots in years, but attacks on centralized exchanges have declined. “[Centralized exchange attacks] Only less than 15% now [stolen] Cryptocurrencies,” Kerr wrote. The report also noted that defi protocol hacks came in the form of flash loan attacks and security breaches. The report’s authors further mentioned the Ronin Bridge attack, which more than $600 million in losses.

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“Hackers and cybercriminals stole more than $3.2 last year, and if there is any progress in the first quarter, we could have even more stolen this year. Cryptomonday CEO Jonathan Merry explained in a statement, The need for tighter security measures is growing, especially as more people are boarding planes.

tags in this story

Theft in 2022, 97%, Cryptomonday CEO, cryptocurrency stolen, cryptomonday.de, DeFi, Defi attack, defi hack, Defi protocol, Elizabeth Kerr, buggy code vulnerability, Jonathan Merry, Q1 2022, research , Ronin bridging attack, stolen cryptocurrency, learning

What do you think of research showing that the majority of stolen crypto assets in 2022 stem from Defi protocol vulnerabilities? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.




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