More than billion in crypto funds have been stolen this year according to a new report issued by blockchain analysis firm Chainalysis. Chainalysis: Crypto Theft Has Reached a New High The crypto space is constantly in a rough spot. There are many people out there that are completely against any sort of regulation, as the crypto space was initially established to give traders and users complete financial independence. No prying eyes, no third parties, just people and their money. However, there are some that believe at least some degree of regulation is necessary if crypto is to thrive. They say that for the crypto space to garner at least a certain level of legitimacy and mainstream appeal, there need to be at least some rules in place – rules that prevent people
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More than $3 billion in crypto funds have been stolen this year according to a new report issued by blockchain analysis firm Chainalysis.
Chainalysis: Crypto Theft Has Reached a New High
The crypto space is constantly in a rough spot. There are many people out there that are completely against any sort of regulation, as the crypto space was initially established to give traders and users complete financial independence. No prying eyes, no third parties, just people and their money.
However, there are some that believe at least some degree of regulation is necessary if crypto is to thrive. They say that for the crypto space to garner at least a certain level of legitimacy and mainstream appeal, there need to be at least some rules in place – rules that prevent people from losing their funds due to crypto thieves and hackers. Those who take from others need to be reprimanded and punished, and those who trade crypto need to be able to feel that they are safe and protected against anyone with ill intent on their minds.
According to Chainalysis, October is always a solid period for crypto hacking activity, and more than $700 million was stolen last month alone. In a statement, representatives of Chainalysis said:
October is now the biggest month in the biggest year ever for hacking activity, with more than half the month still to go.
In addition, the “thus far” number of $3 billion for 2022 easily trumps the $2.1 billion that was stolen the previous year. This is proof that the problem is just getting worse and worse.
Among the things that appear to be contributing to the growth in cyberthief activity are crypto bridges, which seek to connect multiple blockchains together. While there are several crypto and blockchain networks out there, many of them run on different nodes, which can make it difficult for holders to keep different types of crypto in single wallets or trade certain virtual currencies via different arenas.
These bridges work to bring the networks together to ensure traders can engage in activity regardless of where they are or what units are in question. Chainalysis says these bridges can make it easy for hackers to gain entry points to digital networks and make off with crypto funds. The company mentioned:
Cross-chain bridges remain a major target for hackers, with three bridges breached this month and nearly $600 million stolen, accounting for 82 percent of losses this month and 64 percent of losses all year.
Binance Was the Latest Victim
Among the largest hacks to have occurred this year include the recent one on Binance, which saw close to $600 million in crypto funds practically vanish into thin air.
Per Chainalysis, there have been about 125 recorded crypto hacks in 2022 alone.