A total of $1.9 billion worth of cryptocurrencies was stolen by hackers in the first seven months of this year, a 60% increase from the same period of 2021, according to a report from blockchain analysis firm Chainalysis.
The surge in thefts comes despite the value of many cryptocurrencies plunging during the first half of the year, with the price of Bitcoin (BTC) falling more than 50% between January and the end of June.
Some of the biggest cryptocurrency hacks this year have involved DeFi protocols, including the $625 million U.S. attack on video game Axie Infinity’s Ronin network in March.
The report attributes the increase in hacks to decentralized finance (DeFi) protocols that allow users to move money on a blockchain without the need for a bank or other financial institution.
Many of the crypto thefts, including the Axie one, have been blamed on hackers in North Korea. An estimated $1 billion U.S. has been stolen from DeFi protocols by North Korean hackers so far this year, according to the Chainalysis report.
These thefts are thought to be part of a broader strategy to help bring in revenue for the North Korean government as it has largely been cut off from the outside world.
DeFi transactions, based mainly on Ethereum (ETH) blockchain technology, are vulnerable to hackers due to their open-source code, large pools of assets, and lax security, according to Elliptic, another blockchain analysis firm.
Chainalysis warns that the increase in crypto thefts shows no signs of letting up despite the drop in cryptocurrency prices.
In its report, Chainalysis points to two recent large-scale DeFi hacks, including the $190 million U.S. that was stolen from cryptocurrency bridge provider Nomad.
