BestBrokers: DeFi market has become the most attractive target for hackers

According to BestBrokers analysts, the decentralized finance (DeFi) market has become a favorite target for hackers due to the large amount of venture capital money and security problems.

Since the beginning of the year, the number of hacks in the crypto industry has decreased significantly – by mid-June, only 64 cases of security breaches were registered in the industry. Last year, 251 cases were recorded during the same period. However, despite the decreased number of hacks, the damage they cause to the industry has increased.

So, if last year there were 251 hacks for a total of $3.2 billion, then this year about $1.7 billion was stolen in just 64 security breaches. The average amount of funds stolen for hacking was $26.6 million compared to $12.9 million last year. Compared to 2021, the indicator increased by 206%. At the same time, in 2020 this figure was at the level of $5 million.

The researchers suggest that hackers began to focus on larger targets, and the DeFi market became the most attractive target for them. About 72% of all stolen cryptocurrencies in 2021 came from DeFi protocols, and this year the figure has increased to 97%.

BestBrokers crypto analyst Robert Hoffman said that DeFi is attracting hackers because of the large amount of venture capital money that is pouring into the market.

“The race to create a fourth industrial revolution digital financial system is extremely fast-paced, with many stakeholders vying for the top spot. Often in such cases, some aspects of the product, including safety, suffer because of the rush,” Hoffman said.

The previously decentralized financial lending service Inverse Finance was hacked for the second time in two months with an instant loan exploit. This time the hackers stole $1.2 million in BTC and USDT.