There have been numerous hacks that have cost billions of dollars in damage since the start of 2022 up until the present. Several of them, including well-known initiatives like Nomad, Ronin Bridge, and Wormhole,… have had cyber attacks that resulted in the theft of digital money valued at hundreds of millions of dollars. Users’ faith in the initiative is consequently losing more and more of its credibility.
Top 5 hacks in H1 2022
Nomad Bridge
On the morning of August 2, 2022, Hundreds of potential miners took all of the bridge’s $190 million TVL in just a few hours, leaving only $651.54 in wallets, according to decentralized finance (DeFi) tracking platform DeFi Llama.
2 days later, A “White hacker” returned $9.15 million in cryptocurrencies, including $246,000 ETH, 3.7 million USDC, 2 million USDT, $1.4 million CQT, $1.2 million FRAX… It can be seen that this figure is still too low compared to the actual damage from the attack.
Learn about the hack: CLICK HERE
Horizon Bridge
On the morning of June 24, Harmony’s Horizon cross-chain bridge was confirmed to have been hacked by hackers with initial damage estimated at up to 100 million USD, including 85,837 ETH (worth $98.3 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518k), and more tokens Other ERC-20s.
The attack took place on June 23 but was only announced by Harmony at 06:13 AM on June 24, about 12 hours later, creating conditions for hackers to disperse most of the ERC-20 tokens, leaving only large amounts of ETH in the wallet.
Learn about the hack: CLICK HERE
Maiar Exchange
On June 5, Maiar Exchange suffered from a massive hack as it lost around $113M worth of Elrond eGold (EGLD). Founder of Elrond Network Beniamin Mincu announced that his team was “investigating a set of suspicious activities on the Maiar DEX.” After a short period of time, the Maiar Exchange completely went offline.
According to one of the blockchain researchers going by the nickname Foudres, the attackers deployed a smart contract and utilized three wallets to steal a significant amount of funds from the DEX – 800,000, 450,000, and 400,000 EGLD, estimated at $113M.
Learn about the hack: CLICK HERE
Ronin bridge
On March 29, Ronin Network – the blockchain network built by Sky Mavis to serve the development of the famous game Axie Infinity – announced it was hacked and took a total of 173,600 ETH and 25.5 million USDC. The recorded data shows that the attack happened on March 23.
If based on the date of the attack, the hacker took the tokens worth 540 million USD. However, if calculated according to the date of publication, the value of each ETH is 3,400 USD; this cryptocurrency is equivalent to 615 million USD, becoming the largest hack targeting cryptocurrency platforms. Ronin Network later said that it had stopped withdrawing and depositing money into the network and disabled the bridge Ronin with other platforms in the game.
This is also the biggest hack of 2022.
Learn about the hack: CLICK HERE
Wormhole
In early February, the Wormhole blockchain development team confirmed on Twitter that the network was hacked and shut down for maintenance. The team later said the platform had stolen more than $320 million worth of tokens.
Analysis by cybersecurity firm CertiK later showed that the attackers made $251 million from Ethereum, nearly $47 million from Solana, and more than $4 million from USDC.
Wormhole is considered a significant bridge in the Solana ecosystem, connecting more than 13 different Blockchains with TVL up to $570M.
Learn about the hack: CLICK HERE
Lessons from hacks
Research more carefully before using the project.
Most of us still keep the habit of looking at the project website at a glance, looking at the backer, looking at the team, and briefly assessing whether the project has been audited or not. But we don’t know that approved projects have also lost millions of dollars in recent years. Therefore, a preliminary project assessment is a necessary but not sufficient condition for us to spend all our money on it.
No all-in.
We often hear the saying, “Don’t put all your eggs in the same basket.” This is true not only in investing but also in using investment products.
Projects in the current Cryptocurrency market are not stable and can be hacked or collapsed at any time (even wallet applications). Therefore, we should not spend all the capital we have on any one platform but divide it into many wallets and platforms to reduce risk.
Remove unproved projects.
As I said above, project verification is a necessary condition for down payment in any case. The fact that the project offers when the information has not been verified and verified will make the probability of losing your money very high.
Some virtual projects also fake verification documents or partners, investors in order to appropriate users’ money. Therefore, it is necessary to carefully check this information from official sources or check through the information channels of the project in question.
Learn from the past.
Tracking and researching hacked projects and detailed information about the case will also help you gain more knowledge and understand the problem better. Thereby, when selecting projects with similar characteristics, we can consider investment and allocate capital effectively.
Also, when you track information about hacks, you will see how the dev team and stakeholders are reacting. In order for the names of related names to appear when the money goes down in the projects, we will need to immediately remember how they handled when the product happened. From there, better investment decisions can be made.
Verdict
The crypto market is always open to opportunities for newcomers, but it is also fraught with difficulties and risks on the way to finding “sweet fruit” for yourself. Understanding the risks and avoiding the lessons learned is always a way to help yourself not to lose capital. From there, create a basis to earn more income in this market.
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Ken.N
Coincu Ventures
Author
Knowledge
Top 5 Biggest Cryptocurrency Hacks in 2022
There have been numerous hacks that have cost billions of dollars in damage since the start of 2022 up until the present. Several of them, including well-known initiatives like Nomad, Ronin Bridge, and Wormhole,… have had cyber attacks that resulted in the theft of digital money valued at hundreds of millions of dollars. Users’ faith in the initiative is consequently losing more and more of its credibility.
Top 5 hacks in H1 2022
Nomad Bridge
On the morning of August 2, 2022, Hundreds of potential miners took all of the bridge’s $190 million TVL in just a few hours, leaving only $651.54 in wallets, according to decentralized finance (DeFi) tracking platform DeFi Llama.
2 days later, A “White hacker” returned $9.15 million in cryptocurrencies, including $246,000 ETH, 3.7 million USDC, 2 million USDT, $1.4 million CQT, $1.2 million FRAX… It can be seen that this figure is still too low compared to the actual damage from the attack.
Learn about the hack: CLICK HERE
Horizon Bridge
On the morning of June 24, Harmony’s Horizon cross-chain bridge was confirmed to have been hacked by hackers with initial damage estimated at up to 100 million USD, including 85,837 ETH (worth $98.3 million), 592 WBTC ($12.4 million), 9.9 million USDT, 41.2 million USDC, 6 million DAI, 5.5 million BUSD, 5.6 million FRAX, 84.6 million AAG ($1.3 million), 110,000 FXS ($607k), 415,000 SUSHI ($518k), and more tokens Other ERC-20s.
The attack took place on June 23 but was only announced by Harmony at 06:13 AM on June 24, about 12 hours later, creating conditions for hackers to disperse most of the ERC-20 tokens, leaving only large amounts of ETH in the wallet.
Learn about the hack: CLICK HERE
Maiar Exchange
On June 5, Maiar Exchange suffered from a massive hack as it lost around $113M worth of Elrond eGold (EGLD). Founder of Elrond Network Beniamin Mincu announced that his team was “investigating a set of suspicious activities on the Maiar DEX.” After a short period of time, the Maiar Exchange completely went offline.
According to one of the blockchain researchers going by the nickname Foudres, the attackers deployed a smart contract and utilized three wallets to steal a significant amount of funds from the DEX – 800,000, 450,000, and 400,000 EGLD, estimated at $113M.
Learn about the hack: CLICK HERE
Ronin bridge
On March 29, Ronin Network – the blockchain network built by Sky Mavis to serve the development of the famous game Axie Infinity – announced it was hacked and took a total of 173,600 ETH and 25.5 million USDC. The recorded data shows that the attack happened on March 23.
If based on the date of the attack, the hacker took the tokens worth 540 million USD. However, if calculated according to the date of publication, the value of each ETH is 3,400 USD; this cryptocurrency is equivalent to 615 million USD, becoming the largest hack targeting cryptocurrency platforms. Ronin Network later said that it had stopped withdrawing and depositing money into the network and disabled the bridge Ronin with other platforms in the game.
This is also the biggest hack of 2022.
Learn about the hack: CLICK HERE
Wormhole
In early February, the Wormhole blockchain development team confirmed on Twitter that the network was hacked and shut down for maintenance. The team later said the platform had stolen more than $320 million worth of tokens.
Analysis by cybersecurity firm CertiK later showed that the attackers made $251 million from Ethereum, nearly $47 million from Solana, and more than $4 million from USDC.
Wormhole is considered a significant bridge in the Solana ecosystem, connecting more than 13 different Blockchains with TVL up to $570M.
Learn about the hack: CLICK HERE
Lessons from hacks
Research more carefully before using the project.
Most of us still keep the habit of looking at the project website at a glance, looking at the backer, looking at the team, and briefly assessing whether the project has been audited or not. But we don’t know that approved projects have also lost millions of dollars in recent years. Therefore, a preliminary project assessment is a necessary but not sufficient condition for us to spend all our money on it.
No all-in.
We often hear the saying, “Don’t put all your eggs in the same basket.” This is true not only in investing but also in using investment products.
Projects in the current Cryptocurrency market are not stable and can be hacked or collapsed at any time (even wallet applications). Therefore, we should not spend all the capital we have on any one platform but divide it into many wallets and platforms to reduce risk.
Remove unproved projects.
As I said above, project verification is a necessary condition for down payment in any case. The fact that the project offers when the information has not been verified and verified will make the probability of losing your money very high.
Some virtual projects also fake verification documents or partners, investors in order to appropriate users’ money. Therefore, it is necessary to carefully check this information from official sources or check through the information channels of the project in question.
Learn from the past.
Tracking and researching hacked projects and detailed information about the case will also help you gain more knowledge and understand the problem better. Thereby, when selecting projects with similar characteristics, we can consider investment and allocate capital effectively.
Also, when you track information about hacks, you will see how the dev team and stakeholders are reacting. In order for the names of related names to appear when the money goes down in the projects, we will need to immediately remember how they handled when the product happened. From there, better investment decisions can be made.
Verdict
The crypto market is always open to opportunities for newcomers, but it is also fraught with difficulties and risks on the way to finding “sweet fruit” for yourself. Understanding the risks and avoiding the lessons learned is always a way to help yourself not to lose capital. From there, create a basis to earn more income in this market.
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Ken.N
Coincu Ventures
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