$3.7 billion lost to cryptocurrency fraud and hacks by 2022

• According to blockchain audit firm CertiK, $3.7 billion will be lost to cryptocurrency fraud, hacks and exploits in 2022.
• This is the worst year ever for the industry, which lost $3.2 billion in 2021.
• Among notable hacks last year, Sky Mavis’ Ronin Bridge was exploited for $625 million in April.

According to data from blockchain audit firm CertiK, the cryptocurrency market will lose $3.7 billion to fraud, hacks and exploits in 2022. It’s been the worst year for the industry, and he’s up from $3.2 billion in 2021.

December was the least harmful month of 2022, with around $62 million worth of crypto-based exploits, while over $595 million in tokens were stolen in November, CertiK added. .

Another report from blockchain analytics firm TRM Labs also estimated losses of $3.7 billion in 2022, with about 80% of stolen funds tied to attacks against decentralized finance (DeFi) projects. I’m here.

In a notable hack last year, North Korea’s Lazarus Group exploited Axie Infinity’s Ronin Network in April to take home $625 million. This follows his nearly $325 million attack on cross-chain service Wormhole in February.

Ari Redbord, head of legal and government affairs at TRM Labs, told Insider that North Korea alone was responsible for more than $1 billion in stolen funds.

“When you talk about billions of dollars and North Korea, you are talking about a country that essentially has no GDP, so they are essentially creating an economy laundering cryptocurrencies, and those funds are We know we don’t fund lifestyles.” Redboard said.

“They will be used for nuclear proliferation and ballistic missile systems. In 2022, these hacks have turned from a law enforcement issue to a national security issue.”

According to Messari data, the cryptocurrency market will be volatile in 2022, with nearly two-thirds of the market value disappearing in one year. The industry continues to be affected by Sam Bankman-Fried’s former $32 billion cryptocurrency empire FTX, which has spread far and wide in his last two months of the year.