DeFi security loses rose 47.4% in 2022 to hit $3.64B: Report

According to a Jan. 5 study published by Chinese blockchain information steadfast LianAn Technology, decentralized finance, oregon DeFi, exploits crossed blockchains worldwide totaled $3.64 cardinal successful 2022. This represented a emergence of 47.4% compared to the nonaccomplishment of $2.44 cardinal successful 2021. The incidents accrued successful quantity contempt a steep 80% nonaccomplishment successful DeFi full worth locked during the year. 

DeFi losses by 4th successful 2022 | Source: LianAn Technology; Footprint Analytics

Out of the 2022 amount, funds mislaid during cross-chain span hacks amounted to $1.89 cardinal crossed 12 incidents — the highest successful the category. Overall, attacks connected the Ethereum, BNB, and Solana chains accounted for the bulk of exploits.

Out of the 167 notable incidents successful 2022, 51.5% of breaches occurred successful audited projects, portion 48.5% of breaches occurred successful non-audited projects. In total, LianAn said 38.7%, oregon $1.40 billion, of stolen funds were laundered via cryptocurrency mixer Tornado Cash. Only $289 cardinal worthy of funds person been recovered passim the year. However, the fig is apt higher arsenic respective recoveries have yet to beryllium publically disclosed per instrumentality enforcement request. 

Total planetary blockchain-related crimes (financial crimes excluded) amounted to $13.7 cardinal successful 2022. Incidents of wealth laundering topped the database with $7.33 billion, followed by DeFi exploits ($3.6 billion), multi-level selling scams ($1.0 billion), and fraud ($830 million). Aside from the illness of cryptocurrency speech FTX, determination were 243 incidents of fraud, and rug pulls during the period, with $425 cardinal successful full dollar magnitude involved.

"2022 was a grim twelvemonth for the information of the planetary blockchain industry. This leads to a greater and much pressing request for information expectations successful 2023. How to respond against hacker attacks, however to rapidly physique a planetary regulatory framework, and however to use method breakthroughs to resoluteness information threats are each pressing issues we indispensable see and resoluteness successful 2023."