October Becomes Worst Month for Crypto Hacks With Two Weeks to Go

Over $718 million has been stolen from DeFi protocols across eleven different hacks this month so far, per research firm Chainalysis.

AccessTimeIconOct 13, 2022 at 8:49 a.m. UTC
Updated Oct 13, 2022 at 6:54 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

October has become the worst-ever month for crypto-related crimes with over $718 million in overall losses, and that’s with two more weeks to go before the month ends.

Data pointed out by Chainalysis on Thursday noted the amount was stolen from several decentralized finance (DeFi) protocols across 11 different attacks.

This year “will likely surpass 2021 as the biggest year for hacking on record,” Chainalysis researchers wrote. “So far, hackers have grossed over $3 billion across 125 hacks.”

"Despite the current bear market, we’re seeing a lot of activity among hackers, who are targeting various protocols," said Jasper Lee, audit tech lead at crypto auditing firm Sooho.io.

"For those protocols or dapps [decentralized apps] which have not been thoroughly audited, they make for easy and reliable short-term profit. Poorly protected protocols are low-hanging fruit for hackers, who make easy pickings of their too-easily accessed locked," Lee added.

Attackers gained over $3.2 billion in 2021. But 2022 was off to an even-rocky start with a $325 million exploit of popular cross-chain service Wormhole, which was followed by a $625 million attack on Axie Infinity’s Ronin bridge, and then a $200 million exploit of the Nomad bridge.

Attack vectors in the crypto sector range from exploiting bridges, a blockchain-based tool that allows users to transact between different networks, to market manipulation, where rogue traders utilize millions of dollars to move thinly traded markets in their favor to net several multiples of the initial capital deployed.

Over three bridges were breached this month alone, Chainalysis said, with an attack on a BNB Chain-based bridge over the weekend saw exploiters illicitly gaining over $100 million after the bridge was exploited for $566 million. Then, on Monday, the layer 1 blockchain QANplatform was the target of a bridge hack that resulted in the theft of nearly $1 million in QANX tokens.

Elsewhere, Tuesday night saw $100 million in liquidity drained from Solana’s popular Mango Markets trading protocol after a rogue trader manipulated spot token prices to borrow the entirety of the protocol’s assets against their position.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.