• TRM Labs released a report on the illicit sums lost to bad actors in the crypto space in 2022.
• Over $3.7 billion were lost to DeFi exploits in 2022, with 175 incidents resulting in an average loss of $20 million for investors.
• About 10% of cyberattacks last year were protocol exploits, while 90% targeted other infrastructure.
Lost Crypto Funds
TRM Labs, a blockchain analysis firm focused on preventing cybercrime, recently released a report outlining the significant amounts of cryptocurrency that were lost to bad actors in 2022. The total sum amounted to an estimated $3.7 billion across 175 incidents, with each incident resulting in an average loss of around $20 million for investors involved. Once cyberattacks are included as well, the total amount reaches nearly $11.5 billion worth of crypto being taken from individuals and organizations last year alone.
The figures reported by TRM Labs indicate that despite the declining prices and interest experienced during crypto winter last year, scams and thefts within the industry have not decreased significantly or stayed in proportion with similar cases from prior years. For instance, over 2021 there was a sevenfold increase in DeFi exploitations compared to 2022 – leading to losses totaling more than $12 billion across those projects alone.
Improved Security Measures
It appears that smart contracts – which were previously one of the main targets for DeFi exploits – have seen some improvements since then as only about 10% of all cyberattacks last year were protocol related whereas most (90%) targeted other aspects of these platforms’ infrastructure instead. This suggests that measures taken by developers and security teams have been effective at minimizing risks associated with these projects and their potential exploitation by malicious actors looking for funds they can take advantage of.
As cryptocurrency continues to gain mainstream attention and adoption rates rise around the world, it is becoming increasingly important that governments introduce regulations aimed at protecting users from such frauds as well as properly regulating exchanges so they can operate securely without endangering consumers’ funds or personal information to criminals who may be seeking them out online or through other channels. This will help ensure more people feel safe investing their money into digital assets without fear of it being stolen away from them due to inadequate preventative measures taken by companies handling these financial operations on behalf of their customers.
In conclusion, although cryptocurrency has had its fair share of dangers such as scams and thefts throughout its history, efforts by developers and security teams have enabled users to remain relatively safe when trading digital assets online or using them for any purpose whatsoever – if adequate protective measures are taken beforehand like those discussed above (and others). As long as all parties involved remain vigilant about potential threats lurking around every corner, there should be no reason why anyone cannot feel secure investing their funds into this emerging technology sector safely without getting caught up in fraudulent activities nor put themselves at risk financially or otherwise due to negligence on either side’s part when dealing with cryptocurrencies today going forward into future years ahead too!