$3.7 billion was lost to crypto scams and hacks in 2022

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$3.7 billion was lost to scams, hacks and cryptographic exploits in 2022, according to blockchain audit firm CertiK. This marks the worst year in the history of the industry, which lost $3.2 billion in 2021. Among notable hacks last year, Sky Mavis’ Ronin Bridge was exploited for $625 million in April. LoadingSomething is being loaded.

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Cryptocurrency markets lost $3.7 billion to scams, hacks and exploits in 2022, the worst year for the industry and down from $3.2 billion in 2021, according to data from the blockchain audit firm CertiK.

While December was the least dangerous month in 2022 with around $62 million in crypto-based exploits, more than $595 million worth of tokens were stolen in November, CertiK added.

A separate report by blockchain analytics firm TRM Labs also estimated 2022 losses at $3.7 billion and estimated that around 80% of stolen funds involved attacks on decentralized finance (DeFi) projects.

Among notable hacks last year, North Korean group Lazarus earned $625 million after exploiting Axie Infinity’s Ronin network in April. This followed the nearly $325 million attack on cross-chain service Wormhole in February.

Ari Redbord, head of legal and government affairs at TRM Labs, told Insider that North Korea alone was responsible for more than $1 billion in stolen funds.

“When you talk about billions of dollars and North Korea, you’re talking about a country that has virtually no GDP, so they basically created an economy by laundering cryptocurrency and we know those funds don’t not fund a way of life,” Redbord said.

He added: “They will be used for nuclear proliferation or ballistic missile systems. In 2022, these hacks have gone from a law enforcement issue to a national security issue.”

Crypto markets have had a turbulent 2022, with nearly two-thirds of its market value wiped out in the space of a year, according to data from Messari. The industry continues to reel from the fallout from Sam Bankman-Fried’s once $32 billion FTX crypto empire, which caused widespread contagion in the last two months of the year.

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