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More Than $3 Billion Stolen from Crypto Projects in 2022: Forbes

Thu, 12/29/2022 - 08:58
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Godfrey Benjamin
Crypto ecosystem witnessed more than 125 hacks and lost over $3 billion this year
More Than $3 Billion Stolen from Crypto Projects in 2022: Forbes
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The year 2022 can be tagged as one of the most notorious for the digital currency ecosystem, with Forbes confirming that more than $3 billion were lost to heists and exploitation. According to the report, the industry experienced a total of 125 hacks this year alone, and the top five protocols saw a total of $1.48 billion moved by hackers.

The Decentralized Finance (DeFi) ecosystem accounted for the most attacked offshoot in the industry. DeFi hacks accounted for as many as 49% of the overall total. The impacts of the hacks are untold, and they have contributed to shrinking investments in the DeFi world, according to on-chain data.

Per DeFiLlama, the Total Value Locked (TVL) in DeFi protocols shrank from more than $166 billion at the start of the year, and it is currently pegged at $38.91 billion at the time of writing. Expert developers in the industry have continued to express dissatisfaction about how much the protocols — particularly bridges — attract hackers.

In its account, Forbes recounted that the five largest hacks of the year include the $625 million Ronin Network hack, the $325 WormHole Network exploit, the $190 million Nomad Bridge, the $182 million Beanstalk Farms breach and the $160 million Wintermute hack.

Hacks beyond DeFi

While DeFi saw the most hacks, Non-Fungible Tokens (NFTs) and crypto exchanges also recorded a number of exploits all year long. One of the first victims of an exchange hack was, which lost as much as $35 million in mid-January. The hack did not disrupt the exchange's activities but signaled that no trading platform was invincible against hackers.

High-profile NFT projects including the Bored Ape Yacht Club (BAYC) saw a number of attacks on their Discord platforms as hackers explored different strategies to rip off investors.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.