Crypto is crumbling, and DeFi hacks are getting worse
Until recently, DeFi seemed like it was on an exponential trajectory upwards. With the collective value of crypto peaking near $3 trillion, hackers saw a big opportunity. The only thing that may slow them down is the precipitous drop in the value of the tokens they’re going after. DeFi hacks have been getting worse and worse, with no clear solutions in sight. According to a recent report by blockchain security firm PeckShield, the amount of money netted from DeFi hacks in the first four months of 2022, $1.57 billion, has already surpassed the amount netted in all of 2021, $1.55 billion. A report by Chainalysis found a similar trend, with the hacker haul in the first three months of 2022 exceeding a record set in the third quarter of 2021. The biggest contributors to the worst quarter the industry has seen — or the best, if you’re a criminal — were Axie Infinity’s Ronin bridge exploit ($650 million), the Wormhole network exploit ($320 million) and the Beanstalk Farms governance attack ($180 million).