While the crypto industry has achieved significant success in recent years, it’s still facing multiple security issues. Unfortunately, many crypto investors have fallen victim to these attacks and scams, including infrastructure attacks and code exploits.
Infrastructure attacks typically target the various nodes of a blockchain network, including crypto wallets, essential in confirming crypto transactions. On the other hand, code exploits involve hackers looking for loopholes in the different codes of software and smart contracts.
According to TradingPlatforms.com, 2022 saw the most crypto attacks, with almost 90% of digital assets stolen. About $2 trillion is speculated to have been lost to hackers.
The site’s financial analyst, Edith Reads, comments, “Crypto investors have been hit hard with major losses over these hacks. Crypto exchanges will have to be on guard and improve their security measures to mitigate the risk and reassure investors of the safety of their assets.”
The Overview of Stolen Assets in 2022
Last year, hackers were keen to attack infrastructure bridges on Blockchain networks. These bridges connect different networks allowing the transfer of digital tokens. Sadly, a whole $1.4 billion was lost to these hackers on bridges.
A major infrastructure attack was the hack on Ronin, a sidechain bridge for the game Axie Infinity that saw over $615 million stolen. Hackers created private keys that allowed them to fake transactions and take most of the funds.
Another major attack was on Solana’s bridge, Wormhole, which nearly lost over $326million. Luckily, Wormhole was able to resume its normal operations just six hours after the attack, with help from its parent company.
Another bridge attack was on the Nomad. Hackers pinched out a whole $190 million after taking advantage of an upgrade installation. Unfortunately, only $22 million was recovered, throwing many crypto holders in a frenzy.
Moreover, crypto wallets, a key component in Blockchain infrastructure, were not left behind as several crypto wallets were hacked. Before its collapse, FTX saw a loss of about $446 million, from its wallets leaving many crypto investors in peril.
Code exploits saw too many crypto thefts in 2022. For instance, about $600 million in digital assets were lost on the Poly Network over a code vulnerability.
What Measures Have Crypto Exchanges Taken Since 2022?
The major hacks and failures in 2022 shook the entire crypto industry. It’s no surprise major crypto exchanges took an interest in cold wallets. Cold wallets allow users to store their private keys offline and secure their segregated assets away from interference or theft. Binance is at the forefront of developing cold storage with the establishment of Binance Mirror. The mirror allows users to access their cold wallets and other crypto products.
Several crypto exchanges have also prioritized verification and authentication systems. The 2FA or 3FA systems allow users to confirm their identity, and deter unauthorized access and loss of crucial assets.
The massive loss of digital tokens to hackers is a testament to the work that still needs to be done. Crypto exchanges and investors need to consider new and better ways to improve crypto trading and security. The measures taken will be key in shaping the future of the industry.
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