After all the ups and downs, and mainly downs, the year 2022 has come to a close for the entire world. However, it has been one of the cruelest years for the business and the trading sector.
Everything seems to have suffered in the year 2022. The world was in an economic downtrend, with stock markets going down, the cryptocurrency industry losing all of its charms, and recession fears rising.
People cannot wait to say goodbye to the year 2022 but the problem is, things may remain the same at least in the earlier part of 2023.
With the year 2022 ending, companies from around the world have started to look back at the entire year’s performance and impact on their operations.
Similarly, analytical firms have started looking back at the overall performance of the cryptocurrency industry.
However, there is one particular aspect that every regulatory authority wants to review when it comes to cryptocurrencies. It is the hacks that took place in the year 2022 that involved cryptocurrencies.
Hacks in 2022
If the regulators want to pitch the high hack activities in the cryptocurrency industry in 2022 to close the sector, then they are in luck.
The year 2022 indeed has proven to be one of the worst years when it comes to cryptocurrency hacks and exploits.
The data collected by the data analytical firms shows that in the year 2022 alone, more than $3 billion worth of exploits/hacks have taken place.
The report shows that the users ended up losing their funds to the hackers who exploited the market makers, exchanges, bridges, and different crypto-based protocols.
The Largest Hacks in 2022
The highest-valued exploit in the year 2022 for cryptocurrencies was the Ronin Bridge exploit. As a result of the particular exploit, the hackers were able to steal $625 million worth of cryptocurrencies.
The second exploit witnessed in the cryptocurrency industry was Wormhole. The hackers were able to steal $325 million worth of cryptocurrencies.
The third major exploit carried out was of the Nomad Bridge which cost the protocol a whopping $190 million. The fourth major exploit was Beanstalk which cost the protocol $182 million.
The fifth major exploit was Wintermute which resulted in $160 million being stolen from the protocol. The sixth one was of Mango Markets which was reportedly for $112 million.
The seventh major exploit was of BNB Chain costing the protocol to lose $110 million. The eighth major exploit was of Harmony Bridge which cost the protocol $100 million.
The ninth major exploit was of Qubit were the exploiters were able to steal $80 million followed by Fei Protocol which cost the protocol $80 million.
The top 10 exploits alone accumulate to a high of $1.804 billion, which is a huge number. The rest of the amount is from the exploits that were executed by the hackers throughout the year 2022.
According to the statistics, more than 125 hacks cost the protocol such a large figure. The data shows that 66% of the total value of the exploits is represented by these over 125 exploits.
Peckshield is among the firms that collected information about the exploits carried out throughout the year 2022.
The firm revealed that the month of October saw the highest number of exploits compared to the entire year. In this particular month, more than 53 protocols were exploited by hackers.
Increase in Regulatory Scrutiny
Due to the rising number of exploits, the regulatory authorities have launched several scrutinies against cryptocurrency firms and services.
One of the major services banned by the US regulators was Tornado, a cryptocurrency mixer that is used by hackers to mix stolen crypto with normal crypto.
This way the hackers get to mix the stolen crypto and hide their traces so the authorities or the exploited firms cannot trace them back.