CipherTrace Warns About Rise of DeFi Hacks
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Nov. 10, 2020

CipherTrace, a blockchain intelligence company, has found that losses from cryptocurrency-related hacks declined to $1.8 billion over the past 10 months. However, crime focused on decentralized finance (DeFi) sector rose, Reuters reports.

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Dave Jevans, CipherTrace CEO, notes that cryptocurrency exchanges have improved their security protocols, which means there will be "less mass-scale hacks."

"What we have seen is that exchanges and other cryptocurrency players have implemented more security procedures," Jevans said.

CipherTrace has estimated that losses from crypto-focused hacks this year grew up to $468 million, while approximately 20% of those hacks (~$98 million), came from the DeFi market.

The company emphasized that this number is significant in comparison with 2019, when DeFi-related hacks were negligible.

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Despite massive hacking attacks, the crypto community could eventually turn to the DeFi sector as the incident around BitMEX might force cryptocurrency exchanges to seek a new harbor from the regulatory hurricane. The DeFi industry could be one of the ways to survive the upcoming storm, EXANTE Co-Founder, Anatoliy Knyazev believes.

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