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97 percent of crypto hacks target DeFi projects

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HIGHLIGHTS :

  • Hackers have stolen nearly $1.7 billion worth of digital assets so far this year
  • Such protocols make it difficult to detect the theft of assets
  • Most of the hackers are linked to North Korea

The absence of KYC in most Defi schemes has made it easier for criminals to break into them. The report cites the Lazarus Group, notorious for hack attacks that stole nearly $91 million worth of cryptocurrencies last year by breaching multiple protocols

Hackers have stolen nearly $1.7 billion worth of digital assets so far this year

The number of illegal cryptocurrency transactions in the decentralized finance (DeFi) segment has grown exponentially over the past two years. Hackers have stolen nearly $1.7 billion worth of digital assets so far this year. DeFi protocols were targeted in 97 percent of the hackers’ attacks.

According to a report by blockchain analytics firm Chainalysis, more than $84 million of the stolen assets have gone to hackers linked to North Korea. Money laundering using DeFi protocols has also increased in recent years. The report also details the difficulties faced by such protocols in detecting theft of assets. The absence of KYC in most DeFi schemes has made it easier for criminals to break into them. The report referred to the Lazarus Group, notorious for hacking attacks, that last year stole nearly $91 million worth of cryptocurrencies by breaching multiple protocols. It is said to have converted the stolen tokens into Bitcoin and Ether and then transferred them to centralized exchanges to withdraw funds.

Such protocols make it difficult to detect theft of assets

Recently, at least 54 BAYC NFTs were stolen by hacking the Instagram account and Discord server of the NFT series Bored Ape Yacht Club (BAYC). It caused a loss of about $ 137 million. Yuga Labs, the owner of BAYC, and Instagram have started an investigation. A BAYC spokesperson said the hacker had posted a fake link to a website that looked like Bored Ape Yacht Club. Users were later asked to connect their MetaMask to the scammer’s wallet in order to participate in a fake airdrop.

Most of the hackers are linked to North Korea

After the hack was discovered, BAYC alerted its community and removed all links from Instagram and its platforms. Apart from this, BAYC has also prohibited the creation of NFT on behalf of the users. In this case, the users who clicked on the fake Airdrop link have become the target. The stolen NFTs were transferred to the wallet address of the hackers.

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