the reasons behind these thefts finally known?

Sun 21 August 2022 ▪ 12:00

4
min read – by
Cedrick Aimé GUELANG OFALABEN

In early August, a hacking of nearly $200 million worth of cryptocurrency took place. Another cyberattack of about $2 billion in cumulative losses this year. Indeed, the number of these thefts has been a record since the advent of virtual currencies in 2009 and poses a real security problem. Cryptocurrency piracy is taking on uncontrollable proportions. And if nothing is done, the entire industry could collapse.

Hacking cryptocurrencies rising

Theft of cryptocurrencies: numbers that will send shivers down your spine

In 2021 a lot of piracy was committed. The list could be even bigger this year. According to a survey conducted by Atlas VPN, Nearly $2 Billion in Crypto Stolen by Cybercriminals. This is a worrying situation, especially since these numbers only cover the first half of 2022. Some ecosystems are also more focused than others. The analyzes performed draw up a list of the most vulnerable. Ronin is thus in pole position with a significant loss of nearly $600 million.

Overall, Ethereum remains the most targeted blockchain. On 32 events it shows losing a billion dollars. In addition to Ethereum, Solana is also a major target with losses estimated at nearly $383 million. More than 175 events have taken place since January, including 96 between July and August 2022.

Why is crypto hacking growing so fast?

If hackers are so successful, it is because there are undoubtedly many mistakes. In the first place, them cryptocurrency to shape a large cash reserve. We note that these heists have increased with the Covid-19 health crisis and the disproportionate democratization of digital wallets. If we believe Brenda Sharton from the law firm Dechert, a certain technology would facilitate these thefts: bridges between chains. For example, if there is an exchange between two blockchains, such as Bitcoin and Ethereum increases the risk.

Next, the hacking of cryptocurrencies is also explained by: the total or almost total absence of menstruation. As the crypto industry is growing rapidly, some companies want to keep up. And can sometimes hastily neglect essential criteria such as safety. In contrast, banking institutions and top startups invest hundreds of millions in cybersecurity. However, these thefts cause many cybersecurity companies to refuse to participate in the cryptocurrency market.

Finally, in addition to the two main reasons, we can mention the following secondary reasons:

  • Hacking cryptocurrency is less complex and the consequences can run into the millions of dollars;
  • Some targets are often poorly equipped or have limited protection;
  • Stealing access and sensitive information can be done on a larger scale on a blockchain.

Conclusion

In short, regardless of the reasons, cryptocurrency piracy continues to cost the industry dearly. Initiatives such as those of EU countries, including having a unified law on the regulation of cryptocurrencies, are to be welcomed. More will have to be done, because one thing is for sure, crypto theft will not stop anytime soon. Companies will have to refine their cybersecurity.

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Cédrick Aimé GUELANG OFALABEN avatar
Cedrick Aimé GUELANG OFALABEN

PhD student of financial law and experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. Naturally, thanks to his articles, he joins the daily blockchain revolution for a better democratization of DeFi.

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