This is what the industry suffered due to security vulnerabilities.
While 2021 was one of the most successful and profitable years for the cryptocurrency market, unfortunately for some investors, scammers, and hackers they have found the new honeypot called the DeFi industry that brings them more than $ 7 billion in stolen funds. , according SlowMistAnnual report.
According to the company’s report, there were 231 security incidents tracked on the blockchain. The losses from all those incidents total $ 9.8 billion. With more hacks and scams happening in the DeFi industry almost every day, the number mentioned above could exceed the $ 10 billion mark.
Among those 231 incidents, roughly 170 cases were linked to decentralized applications or the decentralized financial sector, including 15 exchange security breaches, correct public blockchain hacks, three wallet security-related issues, and another 35 hacks or scams.
Big blockchains and exchanges
While most of the hacker victims were relatively small chains or projects, there were some major chain-related security issues present in the year 2021. The BSV blockchain became the victim of a 51% attack in the that a person owns more than 50% of the voting power. on the chain and is able to manipulate the entire chain of blocks in its favor.
Even larger networks like Ethereum Classic have become the victims of a fork that appeared due to a vulnerability in Ethereum’s Geth client code. In less than two weeks after the Ethereum Classic issue, the Solana network went offline for 17 hours due to a service attack. But fortunately for its users, the attackers did not steal funds.
As for decentralized and centralized exchanges, the two most notable attacks in 2021 were on Cryptopia and the Liquid Exchange hot wallet. Due to the attacks, a total of almost $ 100 million in tokens and coins were stolen. The value of the lost funds could now easily be multiplied by 1.5, making the results of the attack even more annoying for general users.