Cryptocurrency Hacking Becomes a Serious Problem in 2022, with $3.8 Billion Stolen

Chainalysis said hacking activity “ebbed and flowed” throughout last year, with March and October being particularly serious. October 2022 was the worst month for cryptocurrency hacking, with 32 cyberattacks resulting in $775.7 million being stolen during that period.

In 2022, investors' risk appetite declined and crypto companies collapsed, which led the cryptocurrency market to go into a slump. Investors are losing huge money and regulators are stepping up calls for consumer protection. But hackers won't be stopped.

North Korea-linked hackers have stolen about $1.7 billion in multiple cyberattacks from the cybercrime group Lazarus Group, the largest cryptocurrency hacker to date to hold assets, the report said. “In 2022, they shattered their own records for theft”.

But North Korea has denied allegations of hacking and other cyber attacks.

Chainalysis said cryptocurrency hacking is a big problem in the U.S. economy and predicted the hackers' activities will get harder and reap less money each year.

“Decentralized finance” or DeFi is an emerging segment of the cryptocurrency market and one of the frequent targets of hackers. 82 % of all stolen cryptocurrency comes from this sector.

Chainalysis said cryptocurrency transactions related to illegal activity reached a record $20.1 billion last year.