Top Five DeFi Crime Trends of 2022
Decentralized finance (DeFi) has had a challenging year – losing 75% of its total value locked over the last 11 months. However, while the crypto crash might have hit investors, it did not deter criminals. Bug exploits, logic faults, private key compromises and social engineering attacks broke records in 2022, stealing a record $2.7 billion from DeFi protocols. That is more than half of the $5.1 billion stolen overall from DeFi since 2020. Furthermore, four of 2022’s worst DeFi hacks secured their place on the list of top ten biggest crypto heists of all time.
https://hub.elliptic.co/analysis/top-five-defi-crime-trends-of-2022/
Topic: DeFi hacks [history] - page 8. (Read 19375 times)
Bitkeep has been the next hack, according to hacking sources Bitkeep involved 4 chains of ETH, BSC, POLYGON and TRX, and now $31m has come out as its transaction volume.
It is likely that their losses will increase given that there is currently no response from BitKeep.
Source from OKlink: https://twitter.com/OKLink/status/1607356529929506817
It is likely that their losses will increase given that there is currently no response from BitKeep.
Source from OKlink: https://twitter.com/OKLink/status/1607356529929506817
Hackers managed to re-attack the Rubic cross-chain swap aggregator project, they compromised one of the smart contracts, the damage amounted to ~$1.41 million. The Rubic team reported that 49 users were affected, and promised to compensate for their losses.
https://twitter.com/peckshield/status/1606937055761952770
https://twitter.com/CryptoRubic/status/1607076270663208960
https://twitter.com/peckshield/status/1606937055761952770
https://twitter.com/CryptoRubic/status/1607076270663208960
What a long list. DeFi hacks and exploits will continue. We have so many dubious actors right on the space, one can not be more than careful enough.
I think Insurance coverage might make a big difference against hacks. What do you think?
I think Insurance coverage might make a big difference against hacks. What do you think?
https://markets.businessinsider.com/news/currencies/global-drug-cartel-binance-launder-millions-crypto-exchange-dea-investigation-2022-12
"This is actually an example of where the transparency of blockchain transactions works against criminal actors," Matthew Price, the senior director of investigations at Binance, told Forbes. "The bad guys are leaving a permanent record of what they're doing."
I also write a lot about refunds. Every year it will become more and more difficult to hide the stolen funds.
What a long list. DeFi hacks and exploits will continue. We have so many dubious actors right on the space, one can not be more than careful enough.
I think Insurance coverage might make a big difference against hacks. What do you think?
I think Insurance coverage might make a big difference against hacks. What do you think?
The 2022 Rug Pull Report
https://www.soliduslabs.com/reports/rug-pull-report
https://www.coingecko.com/research/publications/how-many-cryptocurrencies-faile
"3,322 cryptocurrencies that were listed on CoinGecko in 2021, have failed (categorised as a dead coin).
The last bull market run that started in November 2020 saw a spike in cryptocurrencies listed, with more than 8000 cryptocurrencies listed in 2021. As of today, nearly 40% have been deactivated and delisted from CoinGecko."
https://www.soliduslabs.com/reports/rug-pull-report
https://www.coingecko.com/research/publications/how-many-cryptocurrencies-faile
"3,322 cryptocurrencies that were listed on CoinGecko in 2021, have failed (categorised as a dead coin).
The last bull market run that started in November 2020 saw a spike in cryptocurrencies listed, with more than 8000 cryptocurrencies listed in 2021. As of today, nearly 40% have been deactivated and delisted from CoinGecko."
Solana DeFi Exchange Raydium Hacked for Over $2 Million
The attacker appears to have used the protocol’s own private keys to drain liquidity pools. It’s unclear how they got them.
https://decrypt.co/117455/solana-raydium-hacked-2-million
The wallet draining LP Pools from Raydium liquidity pools has received over $2.2M now, including $1.6M $SOL
https://twitter.com/nansenportfolio/status/1603762024667746305?
The attacker appears to have used the protocol’s own private keys to drain liquidity pools. It’s unclear how they got them.
https://decrypt.co/117455/solana-raydium-hacked-2-million
The wallet draining LP Pools from Raydium liquidity pools has received over $2.2M now, including $1.6M $SOL
https://twitter.com/nansenportfolio/status/1603762024667746305?
The hacks seem to involve using buggy smart contracts or protocols. It is really a shame and harmful for the early reputation DeFi of as a whole. Maybe it is better to find DeFi projects to investment with that don't even use smart contracts or any protocols at all?
And all hacker funds are laundered in mixers, it's a shame.
I hope, all hackers will be caught, funds seized and hackers put into prison!
"There were a total of 12,320 requests during the reporting period, a ~66% increase over last year’s report.I hope, all hackers will be caught, funds seized and hackers put into prison!
And all hacker funds are laundered in mixers, it's a shame.
I hope, all hackers will be caught, funds seized and hackers put into prison!
Just like in a children's fairy tale: good will triumph over evil!I hope, all hackers will be caught, funds seized and hackers put into prison!
______
https://www.coinbase.com/blog/transparency-report-2022
Key Takeaways:
"There were a total of 12,320 requests during the reporting period, a ~66% increase over last year’s report.
The ~57% of requests from outside of the United States was a ~6% increase over our previous report. In addition, 21 Countries sent requests for the first time in 2022, including 11 that sent more than one: Andorra (2), Argentina (2), Brazil (5), Bulgaria (3), China (12), Croatia (3), Czech Republic (104), Liechtenstein (4), Serbia (5), Slovakia (6), Taiwan (6).
~80% of law enforcement requests were from the U.S., U.K., Germany, and Spain."
Wow, what a long list!
DeFi is known to be coded badly but I wouldn't expect such a long list...
Devs really need to set up a better code, review it better and do more education on how to code properly.
We can't afford much more DeFi hacks, DeFi is already known to be famous for hacks.
And all hacker funds are laundered in mixers, it's a shame.
I hope, all hackers will be caught, funds seized and hackers put into prison!
DeFi is known to be coded badly but I wouldn't expect such a long list...
Devs really need to set up a better code, review it better and do more education on how to code properly.
We can't afford much more DeFi hacks, DeFi is already known to be famous for hacks.
And all hacker funds are laundered in mixers, it's a shame.
I hope, all hackers will be caught, funds seized and hackers put into prison!
7 000 000$ lodestar finance
https://twitter.com/LodestarFinance/status/1601687317604839424
https://tokeninsight.com/en/news/arbitrum-ecosystem-defi-protocol-lodestar-finance-exploited
"Arbitrum ecosystem DeFi protocol Lodestar Finance tweeted that it was exploited and deposits have been drained. The protocol has set all interest rates to 0.
An attacker manipulated the exchange rate of the plvGLP contract to 1.83 GLP per plvGLP. They supplied plvGLP collateral to lodestar and borrowed all available liquidity. After the hack several plvGLP holders also took advantage of the opportunity and also cashed out at 1.83 glp per plvGLP. The hacker burned a little over 3 million in GLP, their profit on this exploit was the stolen funds on Lodestar - minus the GLP they burned.
Lodestar Finance said that 2.8 million of the GLP (about $2.4 million) was recoverable. The team is going to reach out to the hacker and see if they can negotiate a bug bounty to recover more funds."
https://twitter.com/LodestarFinance/status/1601687317604839424
https://tokeninsight.com/en/news/arbitrum-ecosystem-defi-protocol-lodestar-finance-exploited
"Arbitrum ecosystem DeFi protocol Lodestar Finance tweeted that it was exploited and deposits have been drained. The protocol has set all interest rates to 0.
An attacker manipulated the exchange rate of the plvGLP contract to 1.83 GLP per plvGLP. They supplied plvGLP collateral to lodestar and borrowed all available liquidity. After the hack several plvGLP holders also took advantage of the opportunity and also cashed out at 1.83 glp per plvGLP. The hacker burned a little over 3 million in GLP, their profit on this exploit was the stolen funds on Lodestar - minus the GLP they burned.
Lodestar Finance said that 2.8 million of the GLP (about $2.4 million) was recoverable. The team is going to reach out to the hacker and see if they can negotiate a bug bounty to recover more funds."
The Ankr DeFi protocol was hacked, as a result, a huge number of aBNBc tokens were issued by the attackers, after which its price fell to zero, losses are estimated at about $15 million.
https://twitter.com/PeckShieldAlert/status/1598527823224111104
https://twitter.com/ankr/status/1598503332477280256
The project team confirms the hack and declares that the users' funds are safe, and will be reimbursed by the reissue of aBNBc based on a snapshot of users' wallets.
https://twitter.com/ankr/status/1598570449390260226
https://twitter.com/PeckShieldAlert/status/1598527823224111104
https://twitter.com/ankr/status/1598503332477280256
The project team confirms the hack and declares that the users' funds are safe, and will be reimbursed by the reissue of aBNBc based on a snapshot of users' wallets.
https://twitter.com/ankr/status/1598570449390260226
https://cointelegraph.com/news/ankr-confirms-exploit-asks-for-immediate-trading-halt
"BNB Chain-based decentralized finance (DeFi) protocol Ankr has confirmed it has been hit by a multi-million dollar exploit on Dec. 1.
The attack appeared to be first discovered by on-chain security analyst PeckShield at approximately 12:35 am UTC on Dec. 2. "
The Ankr DeFi protocol was hacked, as a result, a huge number of aBNBc tokens were issued by the attackers, after which its price fell to zero, losses are estimated at about $15 million.
https://twitter.com/PeckShieldAlert/status/1598527823224111104
https://twitter.com/ankr/status/1598503332477280256
The project team confirms the hack and declares that the users' funds are safe, and will be reimbursed by the reissue of aBNBc based on a snapshot of users' wallets.
https://twitter.com/ankr/status/1598570449390260226
https://twitter.com/PeckShieldAlert/status/1598527823224111104
https://twitter.com/ankr/status/1598503332477280256
The project team confirms the hack and declares that the users' funds are safe, and will be reimbursed by the reissue of aBNBc based on a snapshot of users' wallets.
https://twitter.com/ankr/status/1598570449390260226
https://twitter.com/boshen1011/status/1595265219898789888?
"@boshen1011
A total of 42M worth of crypto assets, including 38M in USDC were stolen from my personal wallet ending in 894 in the early morning of November 10 EST.
The stolen assets are personal funds and do not affect on Fenbushi related entities."
Bo Shen is the founder of Fenbushi Capital
"@boshen1011
A total of 42M worth of crypto assets, including 38M in USDC were stolen from my personal wallet ending in 894 in the early morning of November 10 EST.
The stolen assets are personal funds and do not affect on Fenbushi related entities."
Bo Shen is the founder of Fenbushi Capital
https://beincrypto.com/dfx-finance-hacked-exploiter-drains-4m-funnels-funds-tornado-cash/
DFX Finance Hacked, Exploiter Drains $4M And Funnels Funds to Tornado Cash
DeFi protocol DFX Finance has been hacked with the attacker stealing about $4 million.
The team has paused all contracts and will issue a post-mortem soon.
DeFi hacks have been common in 2022 and account for the majority of security incidents.
____
DeFi project Flare on hacked. $17.9 million
https://forklog.com/news/defi-proekt-flare-na-bnb-chain-vzlomali-na-17-9-mln
https://twitter.com/peckshield/status/1591831184526516226?
https://twitter.com/peckshield/status/1591833722621689856?
"The stolen funds/loss is about ~$17M and 4,000 BNB of them are being washed via
@TornadoCash
https://bscscan.com/address/0xe55d77f74ea9335d3a83a673f83f38527a68eb20 "
https://twitter.com/peckshield/status/1591837070926151680?
"It should be rugged with the 3.9B $Flare by calling withdrawProfit() of an unverified contract: https://bscscan.com/tx/0xa09135020bb1271ff684db407783a52163c31c7255955cec1e83fc68a751c027"
DFX Finance Hacked, Exploiter Drains $4M And Funnels Funds to Tornado Cash
DeFi protocol DFX Finance has been hacked with the attacker stealing about $4 million.
The team has paused all contracts and will issue a post-mortem soon.
DeFi hacks have been common in 2022 and account for the majority of security incidents.
____
DeFi project Flare on hacked. $17.9 million
https://forklog.com/news/defi-proekt-flare-na-bnb-chain-vzlomali-na-17-9-mln
https://twitter.com/peckshield/status/1591831184526516226?
https://twitter.com/peckshield/status/1591833722621689856?
"The stolen funds/loss is about ~$17M and 4,000 BNB of them are being washed via
@TornadoCash
https://bscscan.com/address/0xe55d77f74ea9335d3a83a673f83f38527a68eb20 "
https://twitter.com/peckshield/status/1591837070926151680?
"It should be rugged with the 3.9B $Flare by calling withdrawProfit() of an unverified contract: https://bscscan.com/tx/0xa09135020bb1271ff684db407783a52163c31c7255955cec1e83fc68a751c027"
https://cointelegraph.com/news/deribit-hackers-move-stolen-ether-to-tornado-cash-crypto-mixer
Deribit hackers move stolen Ether to Tornado Cash crypto mixer
"The Deribit hot wallet hacker has transferred 1,610 ETH (over $2.5 million) to Tornado Cash, according to data from the Ethereum block explorer Etherscan.
In the aftermath of the $28 million Deribit hack, the unknown exploiter is moving stolen funds using the decentralized cryptocurrency mixer, Tornado Cash."
Deribit hackers move stolen Ether to Tornado Cash crypto mixer
"The Deribit hot wallet hacker has transferred 1,610 ETH (over $2.5 million) to Tornado Cash, according to data from the Ethereum block explorer Etherscan.
In the aftermath of the $28 million Deribit hack, the unknown exploiter is moving stolen funds using the decentralized cryptocurrency mixer, Tornado Cash."
DeFi Protocol Solend Struck by $1.26M Oracle Exploit
Solana-based decentralized finance (DeFi) protocol Solend has suffered an exploit in relation to pricing oracles, resulting in $1.26 million in bad debt.
The exploit was centered around the hubble stablecoin (USDH) and affected the Stable, Coin98, and Kamino lending pools, according to a tweet by Solend.
A pricing oracle is a source of data that provides asset values for blockchains. Hacks and exploits related to decentralized finance, which is a form of lending that takes place without intermediaries, have surged over the past month. Security firm Chainalysis reported that $718 million had been stolen in the first two weeks of October.
https://www.coindesk.com/business/2022/11/02/defi-protocol-solend-struck-by-126m-oracle-exploit/
Solana-based decentralized finance (DeFi) protocol Solend has suffered an exploit in relation to pricing oracles, resulting in $1.26 million in bad debt.
The exploit was centered around the hubble stablecoin (USDH) and affected the Stable, Coin98, and Kamino lending pools, according to a tweet by Solend.
A pricing oracle is a source of data that provides asset values for blockchains. Hacks and exploits related to decentralized finance, which is a form of lending that takes place without intermediaries, have surged over the past month. Security firm Chainalysis reported that $718 million had been stolen in the first two weeks of October.
https://www.coindesk.com/business/2022/11/02/defi-protocol-solend-struck-by-126m-oracle-exploit/
Gala Games lost ~ 26% in price amid fears of hacking or fraud after one address through DEX PancakeSwap issued ~56 billion pGALA, which is the equivalent of $2.2 billion.
https://twitter.com/lookonchain/status/1588352050642837505
However, hackers managed to implement tokens for ~13,000 BNB, Huobi announced the temporary delisting of the GALA token, Binance temporarily suspended the input and output of the GALA token.
https://twitter.com/peckshield/status/1588273496819634176
Everything happened as assumed due to an incorrect configuration of the bridge used by Gala Games to interact with the BNB Smart Chain.
https://twitter.com/pNetworkDeFi/status/1588266897061031936
https://twitter.com/lookonchain/status/1588352050642837505
However, hackers managed to implement tokens for ~13,000 BNB, Huobi announced the temporary delisting of the GALA token, Binance temporarily suspended the input and output of the GALA token.
https://twitter.com/peckshield/status/1588273496819634176
Everything happened as assumed due to an incorrect configuration of the bridge used by Gala Games to interact with the BNB Smart Chain.
https://twitter.com/pNetworkDeFi/status/1588266897061031936
https://cointelegraph.com/news/deribit-crypto-exchange-halts-withdrawals-amid-28m-hot-wallet-hack@
"Deribit crypto exchange halts withdrawals amid $28M hot wallet hack
Crypto exchange Deribit halted withdrawals following a hot wallet hack where hackers got away with $28 million in stolen funds.
The exchange emphasized that client funds are safe as losses are covered by Deribit’s reserves, stating:
“Client assets, Fireblocks or any of the cold storage addresses are not affected. It's company procedure to keep 99% of our user funds in cold storage to limit the impact of these type of events.”
"
"Deribit crypto exchange halts withdrawals amid $28M hot wallet hack
Crypto exchange Deribit halted withdrawals following a hot wallet hack where hackers got away with $28 million in stolen funds.
The exchange emphasized that client funds are safe as losses are covered by Deribit’s reserves, stating:
“Client assets, Fireblocks or any of the cold storage addresses are not affected. It's company procedure to keep 99% of our user funds in cold storage to limit the impact of these type of events.”
"
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