$156 Million Stolen in DeFi Hacks This Year: CipherTrace

May 13, 2021 | Decrypt News | 0 comments

$156-million-stolen-in-defi-hacks-this-year:-ciphertrace

DeFi hacks accounted for $156 million of the $432 million in crypto stolen between January and April, according to a new report from the blockchain analytics startup CipherTrace.

It’s more than was stolen from DeFi protocols in all of 2020. CipherTrace says that the $156 million stolen in hacks doesn’t include an additional $83.4 million pilfered through “DeFi-related fraud.” The most recognizable scheme under this heading is known as a “rug pull,” and involves token holders suddenly cashing out and making off with investors’ money.

The label “DeFi,” or decentralized finance, can refer to any sort of non-custodial protocol using blockchain technology. The idea is that your money is only ever being handled by the code itself, rather than a banker or investment manager. But that code has to come from somewhere: hackers are always a risk, but developers can design DeFi systems with hidden mechanisms that allow them to drain money at will. From the outset, DeFi has been one of the riskier investments in an already risky financial ecosystem.

That the amount of money stolen from these protocols is up this year shouldn’t come as a surprise, given how much the DeFi universe has expanded over the past few months. According to DeFi Pulse, the total value “locked” in DeFi (i.e. entrusted to the code) is now $85 billion, up from $16 billion on January 1.

DeFi Protocol Dodo Hacked for $3.8 Million

Yearn.Finance, a kind of crypto lending project, was hacked for $11 million in February, and $5.7 million was stolen from a platform called Roll in March.

Other hacked DeFi projects include EasyFi, Furucombo, and Dodo. 

News Source from Decrypt.co

Related Articles

Banking giant BBVA debuts Bitcoin trading and custody for Swiss clients

Banking giant BBVA debuts Bitcoin trading and custody for Swiss clients

BBVA Switzerland will soon begin offering Bitcoin trading to private banking clients while not providing any advisory services on crypto investments. Banco Bilbao Vizcaya Argentaria (BBVA) — Spain’s second-largest bank — is set to offer Bitcoin (BTC) trading and...

DeFi Digest: Alkimiya Protocol & Pawn.Fi

DeFi Digest: Alkimiya Protocol & Pawn.Fi

Quick Take Disclaimer: The Block Research team has, is, and will be experimenting with the various protocols, projects, and applications mentioned in this series. The projects mentioned in our reports are not recommendations from our team and should not be...

Pin It on Pinterest

Share This