A sad month of October – The decentralized finance (DeFi) it is an ecosystem of constant innovation. Unfortunately, the smart contracts on which it is based are variable security. So good, that every week of new hack offers make headlines. October was not to be outdone, with several hundred million dollars stolen.
Hack DeFi: $ 657 million gone
The decentralized finance sphere often makes headlines in the crypto media for hacking business.
Unsurprisingly, the month of October didn’t miss the call. Indeed, according to the data collected by the company Shield pecked, In October, 44 different hacks were recorded. These were perpetrated 53 different protocols.
In total, these are no less than $ 760 million that was stolen, making October the bloodiest month for DeFi. October is closely followed by March, with $ 709 million stolen from DeFi protocols.
This staggering figure 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, a bridge that connects the BNB Beacon Chain and the BNB Smart Chain. In total, the attacker managed to steal more than $ 500 million in BNB tokens.
To this sum are added the 100 million dollars stolen from the Mango Markets protocol, deployed on Solana. Fortunately, some of the funds were returned by the attacker after the negotiation.
We can also mention hacks that have targeted protocols Transit Finance, Team finance or TempleDAO.
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The year 2022 much worse than 2021
The decentralized finance ecosystem (DeFi) emerged in late 2019. Quickly, the first attacks on smart contracts were recorded in 2020. Although the phenomenon was still contained, In 2020, $ 250 million had been stolen.
A situation that has rapidly increased in 2021. The number of attacks has in fact exploded, taking the stolen sum to new levels. So, these are more than $ 1.55 billion stolen in 2021.
Unsurprisingly, the year 2022 follows the trend that was emerging in the previous two years. Thus, two months before the end of the year, he has already broken all records.
From January, approx 200 attacks allowed hackers to steal an astronomical sum of $ 2.98 billion. It is almost certain that the $ 3 billion threshold will be crossed by the end of the year. A sad record for DeFi and its defenders.
Lack of security and lack of control
The saddest thing about this case is the fact that most of these hacks could have been avoided. In fact, many DeFi protocols are emerging and opening their doors to the public even before they have verified their contracts.
Thereby, It is essential for DeFi protocols that their smart contracts are verified by competent teams. Unfortunately, the prices and lack of availability of these specialized companies make these audits expensive and tedious.
As a result, we see protocols emerge that are successfully raising several million dollars from TVL, without their contracts being verified.
Fortunately, bug bounty campaigns are on the rise to reward users who have discovered a flaw. Furthermore, in some cases the exploited protocols manage to negotiate with their attacker. This has recently been the case with Transit Finance which managed to recover 70% of the stolen funds.
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