A roundup of the biggest crypto hacks and attacks of 2022

A roundup of the biggest crypto hacks and attacks of 2022

Aside from the poor market conditions, 2022 has witnessed some of the biggest crypto hacks in a year. Here is an overview of all the major crypto hacks this year-

This year has been challenging for cryptocurrencies and the larger digital asset market. From experiencing the peak last year to an endless crypto winter, 2022 has been one of the toughest years in crypto history.

Apart from the bad market conditions, 2022 has witnessed some of the biggest crypto hacks in one year, which is further emphasized below:

Let us take you through them.

1. Wormhole Bridge: $325 million

Wormhole Bridge is ideally used to trade tokens between Ethereum, Solana, BNB Chain, Polygon, Avalanche, Oasis and Terra. In February of this year, the network was attacked by hackers, resulting in a loss of 120,000 tokens. At the time of the hack, the tokens were worth around $325 million.

The hacker faked the verification process on the network while minting Wrapped Ethereum tokens (WETH). Once the minting was complete, the hacker traded around 94,000 tokens on Ethereum and the rest of the tokens were traded on the Solana blockchain in exchange for other altcoins.

Although the network offered a $10 million bounty on the hacker, it was to no avail. In the end, Jump Crypto, the parent company of the network, compensated for the loss.

2. Ronin Chain Hack: $625 million

The Ronin sidechain was used for Axie Infinity, the incredibly popular P2E NFT game. The Ronin network was hacked in the month of March. Initially, it was estimated that the hackers gobbled up $552 million worth of Ethereum and USDC. The developer group Sky Mavis later revealed that the attack was worth $625 million.

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The hackers gained access to several private keys and fake transactions on the network. It was later revealed that a North Korean hacker organization called Lazarus was behind the attack.

3. Beanstalk Farms: $182 million

The month of April witnessed the Beanstalk Farms hack, a stablecoin protocol based on Ethereum. On April 17, the developers found some red flags in the management system of the network.

The hacker used a flash loan to collect a huge lump sum of money in the form of STALK, the management token of the network. Nearly $80 million across a diverse set of cryptocurrencies was compromised, again destabilizing the stablecoin’s 1:1 peg with the US dollar. That resulted in the meltdown of $182 million that was locked as its total value (TVL). The hacker laundered the money through Tornado Cash, which is currently banned by the US government. But before he disappeared, he donated 250,000 USDC to Ukraine as wartime aid.

4. Nomad Network Hack: $190

Nomad Network was probably one of the biggest hacks this year that took place in August. The platform had initiated an upgrade that contained an error in the system. The hackers used this flaw as a point of vulnerability in the system and hacked the network by all its means.

The network held funds in Ethereum, FXS, CQT, DAI and USDC. The Nomad chain hack forced the Federal Bureau of Investigation (FBI) to warn investors of the impending dangers of crypto. Around $22 million was recovered after the hackers were promised a 10 percent return on the funds they returned.

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5. Winterminute Hack: $162 million

UK-based crypto developer Winterminute was hacked in September, resulting in a loss of nearly $162 million. Certik, a well-known blockchain security firm, pointed out that a particular private key was compromised and the hacker used brute force or leakage to perform the hack afterwards. It was also pointed out that a vulnerability in the Profanity address generator was also exploited in the hack.

But fortunately, the company’s centralized and over-the-counter financial systems were not compromised.

6. Binance Smart Chain Hack: $566 million

Binance is the largest cryptocurrency exchange in the world, leading an incredibly large market for investors. The attack on Binance Smart Chain occurred on October 6, 2022.

The hackers infiltrated the BNB cross-chain bridge Token Hub where they were able to mint fake BNB tokens, through fake withdrawal certificates.

Originally the estimate was 566 million dollars. However, Binance CEO Changpeng Zhao traced back 80-90 percent of the lost funds. However, the hackers still managed to get away with $100 million by moving the money across other chains.

7. The FTX collapse: $650 million

The FTX collapse was the worst cryptocurrency event of 2022. Billions of dollars were lost in the meltdown of the second largest crypto exchange in the world when the company filed for bankruptcy due to a liquidity crisis.

Amid the meltdown, several FTX wallets were targeted and hacked, with the attackers getting away with $640 million in tokens. The funds were eventually moved across various exchanges and converted to other altcoins.

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