According to a new report by crypto intelligence firm CipherTrace, cryptocurrency attacks have tended to decline, while attacks on the Decentralized Finance (DeFi) industry have exploded.
According to the firm, the amount of money lost due to cryptocurrency fraud, thefts and hacking attacks reached $ 1.8 billion in 2020. This amount is significantly less than the $ 4.5 billion reported in 2019.
Speaking to Reuters, the company said the total amount of money stolen from DeFi attacks increased from an “almost negligible” amount last year to $ 98 million. CipherTrace CEO Dave Jevans says centralized crypto exchanges have increased security, while the DeFi market, which consists of protocols that provide peer-to-peer ways to borrow and borrow assets, and generating returns for liquidity, remains vulnerable.
“Companies and individuals have launched DeFi products that have not passed security verification. So people understand that there is a weakness here. ”
DeFi Attacks Highlight
Although the attacks on the cryptocurrency market in general seem to have decreased, DeFi attacks marked the year 2020. The cryptocurrency community has long been talking about attacks on the DeFi industry. ICO Analytics conducted an important research and published a report in this context.
Throughout 2020, many DeFi protocols were attacked. Some of the protocols managed to partially recover their funds, while others suffered major losses. Harvest, one of them, lost $ 31.3 million in funds. Maker lost $ 8.3 million, Eminence Finance lost $ 7 million, Value $ 5.4 million, and Acropolis $ 2 million. dForce managed to get back the entire $ 25 million of the stolen fund.