“Cyber Attacks Take a Toll: Crypto Investors Lose Billions in 2022”

Last year marked the worst year on record for cryptocurrency hacks, according to Chainalysis’ latest analysis.

In 2022, cryptocurrency hackers stole $3.8 billion, up from $3.3 billion in 2021. October had the most crypto hacks in a single month with $775.7 million stolen in 32 separate attacks, according to the study.

Decentralized finance protocols, known as DeFi protocols, accounted for about 82%, or $3.1 billion, of all crypto stolen by hackers in 2022.

DeFi protocols contain a series of codes that determine how virtual currency can be used on a blockchain network. Take smart contracts, for example.

These digital contracts are the key underlying technologies that allow crypto transactions to be made. Smart contracts operate according to “if/then” commands; if X, then execute Y.

Within DeFi, smart contracts are publicly viewable sets of instructions that allow users to borrow, lend or make transactions without an intermediary.

Once a user meets the conditions of a smart contract, the contract is automatically executed. This allows for a more secure and efficient way to conduct transactions without the need for a third party.

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