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Before proceeding towards the DeFi Hack, firstly take a quick look over what DeFi protocol is? DeFi is a Decentralized Finance protocol, which includes the formats, codes and procedures that governs the systems of lending, borrowing, and trading digital currencies.
Now, if we discuss the DeFi hacks, throughout this year then we can see a recent tweet by the Blockchain Security company, PeckShield, which posted about the October month exploits that is nearly $760.2 Million in October 2022.
If we go through the DeFi hack happening then we can note a fact that it has the open and immutable nature of smart contracts, so an attacker can gain the access and then use it for token withdrawal.
While PeckShiled added in its tweet that around 53 protocols got affected and grabbed nearly $760.2 Million in the previous month, and approx. $100 Million already returned the exploited protocols, which then calculated the total loss of $657.2 Million.
If we compare the loss from last year then the loss got doubled, as in 2022 it is nearly $3 Billion. BNBCHAIN recorded the highest loss of $586 Million, and just after this, Mango Market noted the $48 Million loss.
Major Hacks in October 2022
According to the Bloomberg report published on October 07, 2022, added that a $568 Million hack affected Binance Coin, which dropped its coin BNB by 3.3% on that day.
In addition, Mango Market, Solana-based Crypto Lender, further noted the loss of around $114 Million as the exploiter manipulated MNGO, Mango’s native token, through the use of smart contract protocol loopholes.
In the end of October 2022, Team Finance also came in this race as it was exploited for $14.5 Million while protocol migration. Then after a few days an attacker confirmed in a series of messages that it will keep 10% of the stolen fund as a bounty and then return the rest to the affected projects.
Some other DeFi hacks that caused around $1.4 Billion in financial loss, earlier this year. Ronin, in March 2022, revealed about the hack of around $615.5 Million, Polu Network, also noted the exploit of $602.2 Million, in August 10, 2021 on three ETH, BSC, and Polygon chains, Wormhole, in February 2022 noted the loss of $326 Million on the Solana blockchain.
Moreover, as per the Peckshield, DeFi platforms exploited for a total $2.32 Billion this year, while the Blockchain bridges have proved the weakest link, with Ronin Network’s $615M theft topping the list. And on the other hand, around 50% of stolen funds washed through Tornado Cash.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
