Habitual Crypto Hacks Have National Security Concerns, Says Expert

© Reuters. Habitual Crypto Hacks Have National Security Concerns, Says Expert

• The continuous episodes of web3 theft may have significant security implications.
• Blockchain criminals stole over $3 billion via 141 crypto vulnerabilities this year.
• Chainalysis said cross-chain bridge exploits account for the lion’s share of lost funds.

According to Eun Young Choi, Director of the National Cryptocurrency Enforcement Team (NCET), there are grievous national security concerns beyond the millions of dollars lost to DeFi hacks and exploits.

These are serious national security concerns that really stretch beyond the fact that there are millions of dollars being stolen in single episodes that we see with the DeFi hacks and exploits.

The director expressed this concern yesterday at Yahoo Finance’s All Markets Summit 2022, adding that crypto crime now pops up in every type of criminal activity that the NCET investigates.

According to Chainalysis, blockchain criminals have stolen up to $3 billion in investor cash through 141 different crypto vulnerabilities since January, a 31% rise from 2022, consequently projecting 2022 as the year with the most cryptocurrency hacks ever.

1/ After four hacks yesterday, October is now the biggest month in the biggest year ever for hacking activity, with more than half the month still to go. So far this month, $718 million has been stolen from #DeFi protocols across 11 different hacks. pic.twitter.com/emz36f6gpK

— Chainalysis (@chainalysis) October 12, 2022

Chainalysis revealed that cross-chain bridge exploits are responsible for as much as $718 million losses for October alone and $2 billion losses in 2022.

Nonetheless, NCET has assisted in the seizure of approximately $3.8 billion in stolen cryptocurrency this year, working with other federal authorities in the United States and internationally. However, most of that amount came from a February indictment involving suspected money launderers of earnings stolen in 2016.

Furthermore, director Choi stated that the web3 industry is maturing and that businesses will realize that taking basic risk reduction precautions and having robust compliance programs is the best line of defense. In related news, BitKeep Swap’s multi-chain wallet was compromised today, resulting in a loss of over one million dollars.

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