16,000 crores drowned in cryptocurrency theft, North Korean hackers create ‘panic’

According to a report by Chainalysis, a North Korean-linked hacker group stole cryptocurrency worth about $1 billion or Rs 8,000 crore this year. All these thefts have been done with DeFi protocol which is the easiest target.

There has been a huge increase in the hacking of cryptocurrencies

There is a huge boom in the hacking of cryptocurrencies. There has been a 60% increase in hacking incidents. This figure is for the first 7 months of this year. Hacking has cost $ 1.9 billion (about Rs 16000 crore). The incidents of theft of funds from the De-Centralized Finance (DeFi) protocol have seen a huge increase. This report was released by blockchain analysis firm Chainalysis on Tuesday. In the same period last year, hackers made $1.2 billion cryptocurrency was stolen. That is, an increase of almost double in such incidents has been seen in a year.

This theft has been done in the DeFi application. Most of the work of this application runs on the Ethereum blockchain. This application is a financial platform where cryptocurrency is bought outside banks. The Chainalysis report shows that such incidents of theft are not going to show any improvement very soon, nor will they be stopped very soon. The $190 million cross chain Bridge Nomad and the $5 million Solana wallet were hacked only in the first week of August.

Why crypto theft is happening

The report states that the DeFi protocol remains the most vulnerable to crypto theft. This is because it has open source code that can be read easily. Cybercriminals take advantage of this and easily hack cryptocurrencies. The report also states that North Korea’s ‘bad actors’ (hacking thieves) are most often involved in hacking and this especially includes elite hacking units such as the Lezarus Group.

North Korea terror

According to a report by Chainalysis, a North Korean-linked hacker group stole cryptocurrency worth about $1 billion or Rs 8,000 crore this year. All these thefts have been done through DeFi protocol. Till this July, there was some reduction in the incidence of theft as the prices of digital assets were registering a fall. Blockchain intelligence firm Chainalysis saw a sharp 65% drop during July. As of July, the total scam was worth $1.6 billion, down 65% from about $4.46 billion in the same period last year.

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One of the reasons for the reduction in the incidence of fraud or hacking is that there was a steady decline in crypto. Along with this, governments have made strict rules to prevent fraud and the monitoring system has been activated on full mode. There was a decrease in scam incidents until January 2022 as the bitcoin price crashed. Frauds decreased due to less purchase and sale. Also, there was a reduction in crypto transfers, which reduced the incidents of theft.