According to a report by security company Hacken, Crypto Investors lost about $2 billion to hack earlier this year.
The most interesting finding is that user interface tampering and signer failure to manage frequently breached multi-signature wallets that require several people to sign transactions before they can execute them.
Central Exchange Bybit’s infamous first quarter hack led to a $1.46 billion violation when the compromised safe-well interface deceived authorized signatories.
This was the third quarter when the single biggest hack was born from Multisig raps.
In the first half, we also saw a $300 million ragpull. The phishing and social engineering campaign also contributed significantly, bringing it to nearly $100 million. Smart contract vulnerabilities are negligible, accounting for less than 2% of total losses.
Access control issues continue to be the dominant theme, taking on more than 80% of all dollars stolen this year.
Hacken has spurred a transition from reactive audits to real-time operational defense. The report recommends using an AI-powered monitoring system that continuously validates multisig transactions, detects deviations in signer activity, and triggers automatic protection.
They also recommend that both the CEFI and Defi projects treat signer protocols, multi-signature front-ends, and human workflows as security-critical infrastructures and strengthen them with automation, training and closer governance.
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