October is sad – The Decentralized Finance (DeFi) It is a continuous innovation ecosystem. Unfortunately, the smart contracts on which they are based are volatile security. Well, every week New breakthrough deals are making headlines. It was not possible to bypass October, when hundreds of millions of dollars were stolen.
Hack DeFi: $657 million gold
The field of decentralized finance often makes headlines in the crypto media for business hacking.
Unsurprisingly, October didn’t miss the call. In fact, according to the data collected by the company PicShieldAnd the 44 different hacks were recorded in the month of October. This was committed in 53 different protocols.
In total, these are no less than $760 million was stolen, making October the deadliest month for DeFi. October closely follows March, when $709 million of DeFi protocols were stolen.
This staggering number is due in particular to The massive attack recorded by the BNB smart chain. In fact, a hacker managed to find a flaw in the Binance Token-Hub, which is a bridge linking the BNB Beacon Chain and BNB Smart Chain. In total, the attacker managed to steal more than $500 million in BNB.
added to this total $100 million stolen from Mango Markets protocol, deployed in Solana. Fortunately, the attacker returned part of the money after negotiation.
2022 is much worse than 2021
The decentralized financial system (DeFi) appeared at the end of 2019. And quickly, in 2020, the first smart contract attacks were recorded. Although the phenomenon continues to be contained, $250 million was stolen in 2020.
A situation that quickly escalated in 2021. Indeed, the number of attacks exploded, pushing the amount stolen to new heights. Hence, this is more than $1.55 billion stolen in 2021.
Unsurprisingly, 2022 follows the trend that has emerged in the past two years. And so, two months after the end of the year, she has already broken all records.
Since January, about 200 attacks allowed hackers to steal an astronomical amount of $2.98 billion. The $3 billion mark will almost certainly be crossed before the end of the year. A sad record for DeFi and its advocates.
Lack of security and lack of scrutiny
The saddest thing about this case is the fact of it Most of these hacks could have been avoided. In fact, many DeFi protocols appear and open their doors to the public even before their contracts have been verified.
Thus, It is imperative for DeFi protocols to have their smart contracts audited by competent teams. Unfortunately, the prices and unavailability of these specialized companies make these audits costly and tedious.
As a result, we see emerging protocols that have managed to raise several million dollars from TVL, without checking their contracts.
Fortunately, bug bounty campaigns aimed at rewarding users who spot a bug are on the rise. Furthermore, in some cases, the exploited protocols were able to negotiate with the attacker. This has been the case lately Transit Finance managed to recover 70% of the stolen funds.
Hacks are unfortunate risks, but they are not inevitable. Need peace of mind for your cryptocurrency? Register quickly on the Binance platformthe absolute benchmark in the sector (commercial link).