DeFi has been around for quite some time, but it only really exploded in 2022. Since then, hundreds of DeFi protocols have appeared on the market and grown exponentially in a very short while. The value of these protocols tripled overnight as millions of people immediately recognized their worth.
However, investors and legitimate parties weren’t the only ones who saw the potential in DeFi. Criminal hackers understood the value at hand, and they zoned in on crypto. Cumulatively, these criminals have stolen over two billion dollars from crypto in 2022 alone. According to Peckshield, a crypto-security firm, that number will continue to rise. In this article, we’ll be looking at the biggest of these heists and will be figuring out how they were possible. Perhaps this can help us understand how we can prevent similar attacks in the future.
While many hacks occur are due to smart social engineering, a few others happen because hackers simply understand the engineering defects of their victims. The Wintermute loss is a very good example of this.
The hack was caused by a user’s address being compromised because of its weakness as a Vanity wallet. Vanity wallet addresses are custom addresses made with…
