A recent report by SlowMist, a blockchain security firm, has unveiled shocking statistics indicating that more than $30 billion worth of cryptocurrency has been hacked in 1,101 documented incidents from 2012 to the present.
These incidents represent approximately 2.5% of the total market capitalization of cryptocurrencies. The report highlights the most common types of hacks, notable historical events, and the importance of robust security measures in the crypto ecosystem.
According to SlowMist, the top five most common types of hacks are smart contract vulnerabilities, rug pulls, flash loan attacks, scams, and private key leaks.
These vulnerabilities have been exploited by hackers to gain unauthorized access to digital assets and defraud users. The prevalence of these types of hacks emphasizes the critical need for enhanced security measures across the crypto space.
The report provides insights into the distribution of hacks across various crypto ecosystems. Among the documented incidents, exchange hacks accounted for the largest losses, with over $10 billion lost over the past decade.
Additionally, there were 217 hacks within the Ethereum ecosystem, 162 within the BNB Smart Chain ecosystem, 119 within the EOS ecosystem, and 85 hacks related to nonfungible tokens (NFTs). These findings shed light on the vulnerability of different blockchain ecosystems to hacking attempts.
The report highlights two significant historical hacking incidents. The infamous 2014 Mt. Gox hack saw the once-prominent Bitcoin exchange file for bankruptcy after losing 850,000 BTC (worth $25.2 billion at the time) due to discreet hacks carried out over several years.
Bitfinex, another major exchange, experienced a security breach in 2016, resulting in the loss of 119,576 BTC (valued at around $70 million at the time). These incidents serve as reminders of the impact of major hacks on the crypto industry.
The report reveals that hack events with losses exceeding $1 billion peaked in the early 2010s and between 2019 and 2021.
However, since 2022, there has been a decrease in the number of security incidents, aligning with findings from other reports. This trend suggests that the industry is becoming more proactive in implementing security measures to combat hacking attempts.