DeFi hacking becomes full-time job for professional attackers
Hacking decentralised finance (DeFi) protocols has evolved into a "full-time job" for professional attackers, according to Mitchell Amador, founder of blockchain security firm ImmuneFi.
Speaking at Web Summit 2024, Amador described DeFi hacking as an “infinitely sustainable and viable business,” even as he noted that the overall crypto space is becoming safer.
He explained that hackers are increasingly sophisticated and are now looking for greater damage than ever before.
These attackers often apply their skills in various ways, including miner extractable value (MEV) strategies, to monetize their unique capabilities.
Despite the rise in hacking incidents, Amador pointed to ImmuneFi’s Q3 2024 report, which indicated a 38% year-over-year decrease in losses from crypto hacks, totaling just under $424 million.
In 2024 alone, total losses from hacks have exceeded $1 billion, a significant drop compared to approximately $3 billion in 2022 and $1.8 billion in 2023.
Amador remarked that while hacking incidents are increasing, there are fewer large-scale breaches.
He cited the October 2024 hack of Radiant Capital, which resulted in a theft of $50 million and was attributed to North Korean hackers who used advanced techniques to compromise private keys.
“Human beings are always the weakest link,” Amador emphasised, highlighting that social engineering remains a critical vulnerability in DeFi protocols.
In response to ongoing threats, ImmuneFi is hosting the Ethereum Protocol Attackathon with a reward pool of $1.5 million aimed at identifying critical bugs in the Ethereum (CRYPTO:ETH) codebase.
Amador expressed hope that this initiative will become a regular event to enhance blockchain security.
Looking ahead, he anticipates that the incoming Trump administration's crypto-friendly policies could positively impact the industry by fostering growth and enhancing security measures.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Wall Street eyes significant upside for Strategy's stock as reserves near 500,000 BTC
Strategy reported a Q4 net loss of $670.8 million, largely due to a $1 billion impairment on its bitcoin holdings, while increasing its BTC reserves to a record 471,107 BTC.With a recent accounting change allowing unrealized bitcoin gains to be recognized, analysts suggest MSTR could be on track for S&P 500 inclusion.
The Daily: Cboe BZX files to list XRP ETFs, BlackRock increases Strategy ownership to 5% and more
Cboe BZX Exchange filed 19b-4 forms with the Securities and Exchange Commission late Thursday to list and trade spot XRP ETFs for Bitwise, 21Shares and Canary Capital.Asset management giant BlackRock has increased its ownership stake in Strategy (formerly MicroStrategy) from 4.09% to 5%, according to a Schedule 13G filing with the SEC.
Federal Reserve Monetary Policy Report: Plan to stop balance sheet reduction at the right time
Trump and Avalanche Fall Behind as FX Guys Presale Rockets Past $3M