Chainalysis: 97% of crypto stolen in 2022 was tied to DeFi protocols

The total volume of illicit cryptocurrency transactions has fallen sharply in recent years, but cybercrime in the DeFi sector has risen. This is according to data from Chainalysis.

Among the main reasons for the situation, Chainalysis says hackers are targeting assets via DeFi projects and using them for money laundering.

During 2021, decentralized protocols were the main target for hackers.

As of May 1, DeFi projects accounted for 97% of the total $1.68 billion in cryptocurrency stolen in 2022, according to researchers.

The majority of funds stolen from decentralized protocols ended up with hackers linked to DPRK. In the current year they have stolen more than $840 million from similar projects.

Another serious problem is the laundering of funds through the DeFi sector, experts say.

In 2022, decentralized protocols received 69% of all funds sent from addresses associated with criminal activity. Last year this figure stood at 19%.

Analysts say the reason is the ability to swap one type of cryptocurrency for another through DeFi, while many such protocols do not conduct KYC procedures. This complicates tracking the movement of funds and is often used by cybercriminals linked to North Korea, Chainalysis noted.

In 2021, attackers targeting the crypto industry stole a record $14 billion.

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