According to a report by crypto data aggregator Token Terminal, cross-chain bridges are the victim of 50% of DeFi exploits. Over the course of two years, approximately $2.5 billion has been stolen by hackers by exploiting their unique vulnerabilities. The amount lost is eye-watering compared to DeFi lending hacks ($718 million) and DEX hacks ($362 million) over the same period. In the first half of 2022, thefts exploiting cross-chain bridges increased by 58% when compared to the same period in 2021. There have been multiple prominent bridge hacks this year. In August, Nomad was hacked for approximately $200 million after developers made changes to its smart contracts. As a result, hackers were able to create false crypto transactions to unload funds from its reserves. A month before, 50k wallets were affected by an attack on the cross-chain Harmony Horizon bridge. The hackers left with $100 million in funds. Cross-chain bridges enable blockchains to talk to one another. They were designed to meet the increasing demand to transfer assets between them without a central authority. They fix a core problem with blockchains: it is hard for them to work together and communicate. In most respects, blockchains are closed spaces. Cross-chain bridges help open them up and increase liquidity.
Full report : Cross-Chain Bridge Hacks Were the Newest Headache in 2022 for Crypto Users.
While these are the largest cryptocurrency bridge hacks that have happened in 2022, OODA has been compiling a comprehensive Web3 incident database based on our research to categorize what compromises are taking place as well as document the root causes that plague Cryptos, DeFi, NFTs, and Web3 in general. Tracking root causes provides comprehensive insights into how innovators can create robust cyber risk management approaches and reduce the potential for consequential attacks. You can access the OODA comprehensive Crypto Incident tracker here.
