Unlike previous years, By 2020, crypto news will not yet dominate major currency exchanges and the theft of billions of dollars. However, much remains to be done, and much of it comes from the emerging decentralization finance sector.
DeFi will be one of the main drivers of the crypto market in 2020. It is reasonable to say that the financial situation is a magnet for liars and hackers. Unsupervised smart contracts with duplicate codes can be a way to exploit vulnerabilities and gain millions of dollars in digital assets. Often confiscated.
A Nay Pyi Taw Report As of November 2020, DeFi accounted for 45% of all thefts and attacks in the first half of this year, losing more than $ 50 million. In the second half, theft and hacking increased by 50 percent, the report said. Dave Jevans, chief executive of CipherTrace, who spoke to Cointelegraph, warned against breaking the rules: “DeFi hacks will focus on more than half of all cryptocurrency hacks by 2020. ”
He added that the lack of anti-money laundering compliance for competition regulators was a stealing of funds in the KuCoin hack, one of the biggest hackers of 2020, using DeFi protocols. Jevans believes that by 2021, AML, It is also believed that the regulations clearly state how DeFi protocols can work with Capture the Flag and the consequences of non-compliance with possible sanctions.
Exchange in 2020
In late September, KuCoin hacker Johnny Luo, the chief exchange officer, confirmed that the hackers had leaked the key to the invasion of the company’s Bitcoin, Ethereum and ERC-20 hot wallets.
KuCoin said in early October It involved the identification of suspects and the rule of law Based on the investigation. Singapore-based exchange in mid-November It was announced that 84% of the stolen crypto was recovered And has resumed most of its commercial assets in full service.
Although there are other exchange blocks this year, KuCoin is the largest. February Italy exchange Altsbit lost almost all of its funds There was a $ 70,000 hack and other minor crypto exchange breaches. 2020 Most common in October 75 Central crypto exchange closed Hacking being onem for various reasons.
DeFi 2020 hack and exploits
The multi-billion dollar DeFi protocols, which have emerged as a way to increase farm yields, have become a hotbed for hackers. The first major incursion of 2020 took place in February on DeFi’s loan platform bZx Two flash loan exploits Resulting in a loss of nearly $ 1 million in user funds. Flash loan is when you borrow a crypto collateral within the same payment method.
Although bZx freezes operations to prevent further losses, Wave of criticism Industry analysts say it could eventually be a centralized platform, possibly the “death of DeFi”.
Markets collapsed in March, and many of the collateral was scrapped, especially for Maker features. It comes next month after an attack on a Bitcoin version of the environment, called imcTC, called the ERC-777 token standard reentrancy method. At the time, the attacker acquired the Uniswap liquidity pool for all its value. It was $ 300,000 at the time.
Last month, we also saw a Chinese loan platform dForce squeezes all of its cash Using the same exploit The hackers have repeatedly stepped up their borrowing of other assets, borrowing about $ 25 million.
The results were revealed in June by Bancor’s smart contracts Water leaks About $ 460,000 for a token. DeFi automation maker says they have released a new version of the smart contract that addresses the vulnerability.
Balancer is another DeFi protocol to make a profit of $ 500,000 in an environmentally-derived ether extracted from its liquid pools through pre-arranged arbitration. Flash loans and arbitration trademark exchanges were made by attacking a vulnerability The Balancer team seems to know:
Not just a hack like other profiteers, bZx also announced in July. Robots controlled the posting of purchase orders in the same block that marked the beginning of the Token Generation incident, a dubious transaction. Profits have seized nearly half a million dollars in pump profits.
DeFi options protocol Opyn was the next target of hackers in August Profit from its ETH Put contract Make off with over $ 370,000. The exploit allowed the attackers to “double exercise” the Ethereum Put oTokens and steal the collateral. Opyn recovered from around $ 440,000 at the USDC using a white hat hack from unique warehouses and effectively returned them to Put sellers.
Alternatively, a direct hack but an error in an unaudited Yam banking smart smart contract The decline of administrative signs has affected It caused a drop in prices in mid-August. By voting to restart version 2, the protocol forced the DeFi whales to appeal.
When sushi unrolls
The SushiSwap Saga was launched at the end of August, using the terms “vampire mining” and “carpet painting”. An anonymous protocol cloner and administrator known as “Chef Nomi” sold SUSHI tokens for $ 8 million. A few days later, Sam Bankman-Fried, CEO of FTX Exchange, rescued the protocol. He provided control of the DeFi Whale Consortium with a Multi-signature Smart Contract. Finally all Funds returned to developer funds:
Continuing with the number of DeFi replicas, such as the “Drawing and Trash Pile”, as they were called during the previous altcoin trial in 2017. Price for this food farm Rise and fall within hours Sometimes even minutes.
In mid-October, when the “farmers” or so-called “farmers” were called, the bad guys were not recognized by Andre Cronje, founder of DeFi protocol Yearn Finance; Save money on non-broadcast smart contracts. Eminence Financial Contract It lost $ 15 million when hacked Within hours, Cronje finished advertising on Twitter about the new “gaming multiverse.” The hacker returned around $ 8 million but kept the rest Take legal action against the Yearn Over lost funds.
In late October, it was modern Attack on Flash Loan Debt Consolidation Agreement with Harvest Financial Protocol Agreement About seven minutes later, he lost $ 24 million. Regarding whether this exploit hack of the design of the attack system can be considered as a hack. Discussed
November was a special one Painful month for Akropolis The DAI stablecoin was hacked for $ 2 million, prompting the “protocol to be suspended”. The Value DeFi protocol lost $ 6 million in overdraft flash loans; Profit for the original $ 7 millionAnd Pickle Finance suffered $ 20 million in collateral losses The sophisticated “evil pot” is taking advantage:
In mid-December, individual attacks broke the pattern of system exploitation. Hugh Karp, founder of the Nexus Mutual DeFi protocol, lost $ 8 million A MetaMask wallet could allow a hacker to break into a payment system that could hack into his computer. This type of attack is usually due to the involvement of the social engineer.
Last year, flash loans were last released so far $ 8 million invasion of Warp finance December 18
Many retailers and investors already hate phishing attempts Ledger hardware wallet owners were also targeted In 2020, the personal information of 272,000 Ledger customers was hacked
By 2020, a lot of bonds and lending will help fight the emerging financial ecosystem. New and faster DeFi protocols are likely to emerge next year. But in order to always move forward, liars,
Entering the current DeFi world requires a lot of vigilance. But it has come a long way in the short term, and the decentralized financial landscape of the future is constantly changing.