Cross-chains in the crosshairs: Hacks call for better defense mechanisms
2022 has been a lucrative year for hackers preying on the nascent Web3 and decentralized finance (DeFi) spaces, with more than $2 billion worth of cryptocurrency fleeced in several high-profile hacks to date. Cross-chain protocols have been particularly hard hit, with Axie Infinity’s $650 million Ronin Bridge hack accounting for a significant portion of stolen funds this year.
The pillaging continued into the second half of 2022 as cross-chain platform Nomad saw $190 million drained from wallets. The Solana ecosystem was the next target, with hackers gaining access to the private keys of some 8000 wallets that resulted in $5 million worth of Solana (SOL) and Solana Program Library (SPL) tokens being pilfered.
deBridge Finance managed to sidestep an attempted phishing attack on Monday, Aug. 8, unpacking the methods used by what the firm suspects are a wide-ranging attack vector used by North Korean Lazarus Group hackers. Just a few days later, Curve Finance suffered an exploit that saw hackers reroute users to a counterfeit webpage that resulted in the theft of $600,000 worth of USD Coin (USDC).
The team at deBridge Finance offered some pertinent insights into the prevalence of these attacks in correspondence with Cointelegraph, given that a number of their team members have previously worked for a prominent anti-virus company.
Co-founder Alex Smirnov highlighted the driving factor behind the targeting of cross-chain protocols, given their role as liquidity aggregators that fulfill cross-chain value transfer requests. Most of these protocols look to aggregate as much liquidity as possible through liquidity mining and other incentives, which has inevitably become a honey-pot for nefarious actors:
Smirnov added that bridging
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