Crypto Hacks Surge Past 250 Incidents This Year

Crypto hacks have nearly doubled in frequency compared to last year, with over 250 incidents reported so far. According to DefiLlama, a total of $1.4 billion was lost due to these hacks, with an average loss per incident lower than last year.

The majority of attacks targeted bridges and cross-chain infrastructure, which move assets between blockchains. These systems are considered core components of the DeFi ecosystem but lack adequate cybersecurity verification capabilities, making them prime targets for hackers.

One notable example is the hack on the Liquid Network, a Bitcoin-pegged system, where approximately $320 million was stolen. The attacker returned 3,400 BTC but kept around $47 million worth of assets. Experts point out that even when the underlying blockchain functions normally, peripheral infrastructure can still be vulnerable.

The industry is facing a paradox: decentralization was meant to reduce reliance on trust in financial intermediaries, but its integration into the mainstream depends on trust in the infrastructure built around blockchains. This has led to increased demands for higher security standards and greater decentralization of custodians and settlement networks.