DeFi security losses rose 47.4% in 2022 to hit $3.64B: Report

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DeFi security losses rose 47.4% in 2022 to hit $3.64B: Report
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Out of the amount, LianAn says 38.7%, or $1.40 billion worth of stolen funds were laundered via cryptocurrency mixer Tornado Cash.

by Chinese blockchain security firm LianAn Technology, decentralized finance exploits across blockchains worldwide totaled $3.64 billion in 2022. This represented a rise of 47.4% compared with the loss of $2.44 billion in 2021. The incidents increased in quantity despite a steep 80% loss in the total value locked in DeFi during the year.Out of the 2022 amount, funds lost during cross-chain bridge hacks amounted to $1.89 billion across 12 incidents — the highest in the category.

Out of the 167 notable incidents in 2022, 51.5% of breaches occurred in audited projects, while 48.5% of breaches occurred in non-audited projects. In total, LianAn said 38.7%, or $1.40 billion, of stolen funds were laundered via cryptocurrency mixer Tornado Cash. Only $289 million worth of funds were recovered throughout the year. However, the number is likely higher, as several recoveriesTotal global blockchain-related crimes amounted to $13.7 billion in 2022.

"2022 was a grim year for the security of the global blockchain industry. This leads to a greater and more pressing demand for security expectations in 2023. How to respond against hacker attacks, how to quickly build a global regulatory framework, and how to apply technical breakthroughs to resolve security threats are all pressing issues we must consider and resolve in 2023."

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