A new analysis by SlowMist examines the most significant developments in the blockchain sector in 2022. The SlowMist report gives an assessment of the security state of each business sector and details “typical attack approaches.” Furthermore, it identifies a few phishing strategies and examines “the movement of stolen cash in certain security situations.”
As per SlowMist Hacked, a record of blockchain security events, “there were 303 blockchain-linked security events last year, with losses amounting to $3.777 billion (estimated at the price at the time of occurrence)”
The $3.777 billion in damages recorded by SlowMist Hacked indicates a 61% drop compared to the $9.795 billion in losses recorded in 2021. It should be emphasized, nevertheless, that this statistic “does not reflect for assets shed due to market volatility, and is also impacted by currency values.”
There were 255 security issues that affected multiple systems, such as DeFi, cross-chain bridges, and NFT. Furthermore, there were ten security issues involving cryptocurrency exchanges,
eleven involving public chains, six involving wallets, and twenty-one occurrences of various categories.
The inherent characteristics of bitcoin transactions include confidentiality and irreversibility. As a result, blockchain anti-money laundering is in a vital position and the final line of protection against hackers effectively cashing out in the case of ongoing cryptocurrency frauds.
The SlowMist article said, “Confronted with the widespread danger of hackers, many entities have “established” an anti-money laundering coalition, comprising trading platforms/fund administration platforms/project stakeholders, regulators, and blockchain security companies.”
According to the report, on May 8, “the most disastrous collapses in the existence of the cryptocurrency market occurred when the Terra blockchain network’s stablecoin, UST, saw a $285 million sell-off.”
This resulted in a loss of approximately $40 billion in market value in one day. This mishappening’s effect “was so devastating that it almost wiped out the whole environment, as its TVL
dropped to virtually zero.” This occurrence may “even be viewed as the cause of the cryptocurrency winter of 2022.”
As per SlowMist Hacked, there had been 183 significant DeFi security breaches in 2022, amounting to $2.07 billion in damages, or nearly 55 percent of the calendar year’s aggregate losses.
“Nearly 79 of these occurrences occurred on BNB Chain, causing a cumulative loss of roughly $785 million, stamping it as the platform with the biggest losses.” Ethereum had over 50 security breaches leading to a cumulative loss of approximately $528 million, trailed by Solana with approximately 11 occurrences that resulted in an overall loss of approximately $196 million.
