While 2022 has been a typically roller-coaster year for cryptocurrency buyers, it's shaping up to be exceptional for one group of virtual money enthusiasts: thieves. Criminals have already stolen more than $1 billion in crypto this year.
Attacks onCrypto.com in January,Wormhole in FebruaryandRonin Networklast month each resulted in multimillion-dollar losses. Cybersecurity experts say hackers often target decentralized finance, or DeFi, platforms with weak security. DeFi services are typically built on public blockchains, allowing users to exchange crypto back and forth without the need for an established financial institution like a bank or credit union.
"We should expect these types of [sophisticated] attacks to continue to increase, as more and more criminal organizations build DeFi-hacking skills in-house," Mitchell Amador, CEO at cybersecurity auditing firm Immunefi, told Yahoo Finance earlier this month. "Furthermore, as DeFi gets bigger and bigger, these kinds of attacks become more and more lucrative."
The most recent attack came last week when an unknown hacker stole $182 million from Beanstalk Farms the fourth-largest hack on a DeFi service to date. PeckShield, a blockchain security company in China, said thieves used a "flash loan" to exploit security weaknesses in Beanstalk. A flash loan is an unsecured loan that bypasses the need for collateral from the borrower by using smart contracts requiring repayment by the the end of a transaction usually within seconds or minutes.
A large portion of the $182 million that was drained went toward fees on exchange platforms, such as Uniswap and Aave, used to carry out the attack. In the end, the culprit tookhome 24,830 in ether and 36 million BEAN tokens. Beanstalk officials said in a blogpostthat the hackers made out with roughly $76 million of users' crypto holdings. It's unclear if Beanstalk, which launched last August, has been able to recover the stolen crypto.
PeckShield said the hacker laundered the stolen cryptocurrency using Tornado Cash, a service that lets users transfer crypto tokensanonymously.
Since the attack, users have contacted Beanstalk with their suggestions on how to tighten security. Beanstalk said in its blog post that it is taking those thoughts into consideration and "is preparing a strategy to safely re-launch a more secure Beanstalk with a path forward."
Another cyber criminal stole more than $3 million worth of Bored Ape Yacht Club, a popular series of non-fungible tokens, after hacking into the brand's Instagram account. Owners of BAYC lost four Bored Apes, six Mutant Apes and three Bored Ape Kennel Club NFTs, Bloomberg News reported in late April. It's unclear if parent company Yuga Labs has been able to retrieve the stolen digital assets.
Hackers have already snatched more than $1.2 billion in crypto from DeFi platforms this year, according to Immunefi, compared $154 millionin the first quarter of 2021. In all of 2020, hackers stole a total of $162 million in crypto from DeFi platforms, according todata from blockchain analytics firm Chainalysis.
"We've also seen significant growth in the usage of DeFi protocols for laundering illicit funds, a practice we saw scattered examples of in 2020 and that became more prevalent in 2021," Chainalysis said in a report. "DeFi protocols saw the most growth by far in usage for money laundering at 1,964%."
Trending News
Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.
Read the original here:
Cryptocurrency heists are getting more ambitious and costlier to investors - CBS News
- Bringing clarity to cryptocurrency - Washington Times - May 21st, 2024 [May 21st, 2024]
- Justice Department Arrests Suspects in Cryptocurrency Money Laundering Case The Presidential Prayer Team - The Presidential Prayer Team - May 21st, 2024 [May 21st, 2024]
- This Man Did Not Invent Bitcoin - The New York Times - May 21st, 2024 [May 21st, 2024]
- Cryptocurrency Market News: Tornado Cash Developer Sentenced to Over 5 Years in Prison - Investopedia - May 21st, 2024 [May 21st, 2024]
- Venture Capital Pours $2.4 Billion into Cryptocurrency Startups in Q1 2024 - The Dales Report - May 21st, 2024 [May 21st, 2024]
- What can I buy with Bitcoin? - Quartz - May 21st, 2024 [May 21st, 2024]
- Wealth of knowledge: Teen recognized for helping educate others about cryptocurrency - The Daily Reflector - May 21st, 2024 [May 21st, 2024]
- What cryptocurrency is the best for businesses? - AMBCrypto News - May 21st, 2024 [May 21st, 2024]
- The Future Of Cryptocurrency In Africa - CIO Africa - May 21st, 2024 [May 21st, 2024]
- This Top Cryptocurrency Could Reach $1 Million by 2030, According to Jack Dorsey - Yahoo Finance - May 21st, 2024 [May 21st, 2024]
- What is Market Manipulation in Cryptocurrency? - UseTheBitcoin - May 21st, 2024 [May 21st, 2024]
- Bitcoin in Focus As CME Reportedly Plans to Offer Spot Trading in the Cryptocurrency - Investopedia - May 21st, 2024 [May 21st, 2024]
- Cryptocurrency Price on May 21: Bitcoin jumps above $71k amid inflows in spot BTC ETFs; Ethereum, Avalanch - The Economic Times - May 21st, 2024 [May 21st, 2024]
- Bitcoin jumps back to over $70K, buoying crypto-tied stocks (Cryptocurrency:BTC-USD) - Seeking Alpha - May 21st, 2024 [May 21st, 2024]
- Brothers charged after $25M in cryptocurrency stolen in 12 seconds - USA TODAY - May 21st, 2024 [May 21st, 2024]
- Bitcoin surges to $71000 level today; what's driving the rally? - Mint - May 21st, 2024 [May 21st, 2024]
- Brothers allegedly steal $25 million in cryptocurrency in 12 seconds - Scripps News - May 21st, 2024 [May 21st, 2024]
- Cryptocurrency: Crucial decision this week for the Ethereum ETF - Cointribune EN - May 21st, 2024 [May 21st, 2024]
- DOJ Charges American Brothers with Cryptocurrency Fraud The Presidential Prayer Team - The Presidential Prayer Team - May 21st, 2024 [May 21st, 2024]
- Is Block Stock a Once-in-a-Generation Buying Opportunity? Yes, But Only If You're Bullish on This Top Cryptocurrency - The Motley Fool - May 21st, 2024 [May 21st, 2024]
- Report: Crypto Spot Trading Slows in April - PYMNTS.com - May 21st, 2024 [May 21st, 2024]
- Genesis to pay $2 billion to victims of alleged cryptocurrency fraud - MSN - May 21st, 2024 [May 21st, 2024]
- Solana, Arbitrum, And BlockDAG: Assessing The Top Cryptocurrency To Invest In 2024 - Blockchain Magazine - May 21st, 2024 [May 21st, 2024]
- Ethereum Climbs 11% In a Green Day By Investing.com - Investing.com - May 21st, 2024 [May 21st, 2024]
- Crypto Processing CryptoCloud: Unlocking the Future of Cryptocurrency Payments with Enhanced Performance and ... - CryptoGlobe - May 21st, 2024 [May 21st, 2024]
- Introducing CryptoGiftCard.io Your Gateway to Cryptocurrency Access for All, Powered by CellPay - Newswire - May 21st, 2024 [May 21st, 2024]
- Cryptocurrency prices today: Check rates of Bitcoin, Ethereum, Dogecoin, Solana - NewsBytes - May 21st, 2024 [May 21st, 2024]
- The Pulse of the Market How Fear and Greed Shape Cryptocurrency Trading - The Daily Hodl - May 21st, 2024 [May 21st, 2024]
- Bitcoin price today: rebounds to $70k on spot Ether ETF speculation - Investing.com - May 21st, 2024 [May 21st, 2024]
- Brothers Anton and James Peraire-Bueno charged with $25m ethereum fraud - The Washington Post - May 21st, 2024 [May 21st, 2024]
- MIT-educated brothers accused of stealing $25 million in cryptocurrency in 12 seconds in Ethereum blockchain scheme - CBS News - May 15th, 2024 [May 15th, 2024]
- DOJ Charges 2 Brothers With Scheme to Steal Cryptocurrency - PYMNTS.com - May 15th, 2024 [May 15th, 2024]
- US charges two brothers with novel $25 million cryptocurrency heist - AOL - May 15th, 2024 [May 15th, 2024]
- MIT-educated brothers allegedly stole $25M in crypto in just 12 seconds - New York Post - May 15th, 2024 [May 15th, 2024]
- DOJ charges 2 brothers tied to $25M attack on MEV bots last year - Blockworks - May 15th, 2024 [May 15th, 2024]
- Brothers indicted for 'first-of-its-kind' cryptocurrency heist - Courthouse News Service - May 15th, 2024 [May 15th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 - The Motley Fool - May 15th, 2024 [May 15th, 2024]
- Sonne Finance developers offer bounty to hacker behind $20 million crypto theft - The Record from Recorded Future News - May 15th, 2024 [May 15th, 2024]
- Brothers indicted over $25 million Ethereum cryptocurrency theft: DOJ - FOX 10 News Phoenix - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Price on May 15: Bitcoin dips below $62k ahead of US inflation report today - The Economic Times - May 15th, 2024 [May 15th, 2024]
- $100 Trillion Market Cap For Cryptocurrency Will Be a Reality: Analyst - Watcher Guru - May 15th, 2024 [May 15th, 2024]
- This Week in Web3: Crypto Payment Rails and Regulatory Clarity - PYMNTS.com - May 15th, 2024 [May 15th, 2024]
- Unveiling Fourprime Token Where Innovation Meets Cryptocurrency Revolution - AccessWire - May 15th, 2024 [May 15th, 2024]
- Binance: A Comprehensive Overview of The World's Leading Cryptocurrency Exchange - Blockchain.News - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Likely to Resume Rally: 4 Stocks Set to Gain - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency: Mass Institutional Adoption Underway, with Bitcoin, BlockDAG Network, and Ethereum Value Surge - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- The Ultimate Cryptocurrency to Buy With $1,000 - sharewise - May 15th, 2024 [May 15th, 2024]
- Two Brothers Arrested for Attacking Ethereum Blockchain And Stealing $25M In Cryptocurrency - Eurasia Review - May 15th, 2024 [May 15th, 2024]
- 3 Potentially Brutal Cryptocurrency Risks That Most Investors Simply Aren't Ready For - The Motley Fool - May 15th, 2024 [May 15th, 2024]
- Crypto customer scammed in alleged HK$1 million hell money scheme in Hong Kong - South China Morning Post - May 15th, 2024 [May 15th, 2024]
- Brothers accused of stealing $25 million in cryptocurrency in 12 seconds - MSN - May 15th, 2024 [May 15th, 2024]
- Solana (SOL) Price Prediction 2024,2025 And 2030 Forbes Advisor INDIA - Forbes - May 15th, 2024 [May 15th, 2024]
- Cryptocurrency Warning: Avoid These 3 Failing Names - InvestorPlace - May 15th, 2024 [May 15th, 2024]
- Top 3 Cryptocurrency to Invest Now According to Reddit: Bitcoin, Ethereum, Furrever Token - Yahoo Finance - May 15th, 2024 [May 15th, 2024]
- Two Brothers Educated In Prestigious University Stole Cryptocurrency Worth $25 Million In 12 Seconds, Feds Allege - Daily Caller - May 15th, 2024 [May 15th, 2024]
- 6 Altcoins To Consider Buying For The Next Bull Run In 2024 - Forbes - May 15th, 2024 [May 15th, 2024]
- US charges two brothers with novel $25 million cryptocurrency heist - ThePrint - May 15th, 2024 [May 15th, 2024]
- Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next. - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Market News: Bitcoin Halving Steadies Price, Network Transaction Fees Spike - Investopedia - April 25th, 2024 [April 25th, 2024]
- Bitcoin Just Did Something It Has Only Done 3 Times Before. The Cryptocurrency Usually Does This Next. - Yahoo Finance - April 25th, 2024 [April 25th, 2024]
- 10 Best Cryptocurrencies To Buy In April 2024 - Forbes - April 25th, 2024 [April 25th, 2024]
- Movement Labs raises $38 million to build layer 2 blockchain on Ethereum with Facebook tech - Fortune - April 25th, 2024 [April 25th, 2024]
- Cardano Founder Charles Hoskinson Reiterates Core Purpose of Cryptocurrency Here's What You Need to Know - Cryptonews - April 25th, 2024 [April 25th, 2024]
- From Cryptocurrency to Cannabis: 7 Penny Stocks on the Rise - InvestorPlace - April 25th, 2024 [April 25th, 2024]
- South Carolina: Cryptocurrency scams on the rise in Upstate - WYFF4 Greenville - April 25th, 2024 [April 25th, 2024]
- Binance BNB Memecoin Traders Join 100X New Cryptocurrency On Uniswap - Yahoo Finance - April 25th, 2024 [April 25th, 2024]
- The Future of Real Estate: Investing in Tokenized Properties with Cryptocurrency - ForexLive - April 25th, 2024 [April 25th, 2024]
- The Current Position with Cryptocurrency Regulation in the United States - Latest Cryptocurrency Prices & Articles - April 25th, 2024 [April 25th, 2024]
- 3 Must-Know Facts About Ethereum, Before You Buy the Cryptocurrency - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency: 3 Meme Coins To Watch In May for Exponential Gains - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- EOS Falls 14% In Bearish Trade By Investing.com - Investing.com - April 25th, 2024 [April 25th, 2024]
- The UItimate Cryptocurrency to Buy With $1,000 Today - The Motley Fool - April 25th, 2024 [April 25th, 2024]
- Romance scams involving AI images, cryptocurrency on the rise in Chicago - CBS Chicago - April 25th, 2024 [April 25th, 2024]
- Bitcoin Halving Event Of 2024: The Aftermath Forbes Advisor Australia - Forbes - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Ethereum Classic Down More Than 4% Within 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency: Top 3 Coins To Buy Now For 10X Gains In 2024 - Watcher Guru - April 25th, 2024 [April 25th, 2024]
- What's going to be different with the halving of Bitcoin this time? - Euronews - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency OKB Decreases More Than 3% Within 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency OKB Decreases More Than 3% Within 24 hours - Investing.com UK - April 25th, 2024 [April 25th, 2024]
- Cryptocurrency Kaspa Falls More Than 3% In 24 hours - Benzinga - April 25th, 2024 [April 25th, 2024]