Listen to this story
In a recent report by blockchain analytics firm Chainalysis, it was found that over $1.4 billion has been stolen from crypto bridge hacks this year alone. As per the data presented in the report, it was concluded that 69% of funds were stolen from bridges among all the crypto-related hacks. This has led to doubts about the security of blockchain technology.
Among the victims so far, Crypto.com has been looted of $35 million, Qubit QBridge Hack of $80 million, Wormhole of $325 million, IRA Financial Trust of $37 million, Cashio of $52 million, Axie Infinity Ronin Bridge of $625 million, Beanstalk of $182 million, Fie Protocol of $80 million and Harmony Bridge of $100 million. The breaches took place between January and June.
Blockchain trading has seen high takers, with its popularity increasing every day. However, the lack of proper security measures has led to concern among users and developers. No central intermediary executes a ‘smart contract’ code for exchanging money. The heavy traffic on its network and the high sum of money at stake make it a target of a breach in the hands of high-tech hackers.
Recent hacks and breaches on their network have proven that ‘validators’ on the network who approve transactions could be cheated to gain access to locked cryptocurrency. This makes the system more vulnerable to crypto bridge hacks. Moreover, the contract is available on a public blockchain. The hacks have become so severe that some notable crypto bridges that link blockchain networks like Nomad are offering hackers a percent of their loot in return for the hacked amount. They are offering the hackers a share and freedom from any legal action taken against them.
Because of the multiple attacks on bridges in such a short period, it was inferred by cryptocurrency experts that the security system for trading in crypto needs an urgent update. While the Ronin Bridge hack victims were assured to be reimbursed, others may need some time to return or decide the best course of action.