One major issue that the crypto market has yet to properly contend with, despite its presence being too big to ignore, is the rampant occurrence of cybercrime in the DeFi space.
Hacks, and the subsequent damage that they can do to a company’s reputation and finances cannot be understated. And while many companies are looking into unique ways to protect themselves from hackers, it seems to have no effect on the hackers themselves.
Despite October not even reaching it’s mid, it has already become the largest month for crypto hacks in the year, with various projects managing to lose over $700 million.
Throughout, the year, however, things are looking much grimmer, with total losses for the year climbing to a staggering high of $3 billion. Hackers were able to steal all of this money in just 125 hacks.
And if the security infrastructure continues to lack in all the right places, then it is more than likely that this number will only increase in the coming year.
October Becomes Biggest Month for Crypto Losses from Hacks
One of the worst things to happen to the crypto and DeFi space this month was the number of high-profile hacks that took place on Tuesday.
While there have been a number of other hacks to happen throughout the space before and after, these four had the greatest impact on the overall community.
A number of DeFi projects have been hacked, contributing to the $718 million figure that chainalysis was able to come up with. In 11 days, 11 separate companies with varying degrees of complex security were hacked. Some companies like QANX saw hackers make away with $1.16 million.
Noticeable Hacks to Happen this Month
While many will believe that ghosts aren’t real, companies in the DeFi space would like to disagree. Since hackers are rarely ever caught and brought to justice for their crimes, they might as well be ghosts or phantoms to make their way around different companies.
Some of the most noticeable hacks to happen during the month included the Binance Bridge hack which saw hackers make away with $586 million in a single hack. October also saw the hack of the Mango Markets, where the exchange was bled dry through a hacker using an exploit to steal the company’s collateral.
The Mango Markets case is especially confusing since the individual responsible for the hack would even propose returning the stolen money in exchange for a certain amount of stablecoin from the company’s treasury.
Cross-Chain Bridges are Still Most Susceptible to Hacks
One thing that most of the hacks that happened during this time have in common is that most of them had their fund stolen from cross-chain bridges.