• Centralized exchanges have suffered 118 hacks over the past decade, resulting in a loss of nearly $11B.
• The two largest hacks took place in 2021 and account for almost $5 billion of the total.
• Most large-scale hacks occurred during bullish market cycles.
Centralized Exchanges Lose Billions to Hackers
A recent study conducted by blockchain security firm SlowMist revealed that centralized exchanges have lost an astonishing amount of money to hackers since 2012: roughly $10.95 billion. This figure was achieved through 118 separate hacks, with two of the largest taking place in 2021 and accounting for nearly half ($5 billion) of the total losses.
Bullish Market Cycles Spur More Hacks
The data also showed that most large-scale hacking incidents occurred during bullish market cycles, suggesting that hackers take advantage of periods when crypto prices are soaring to make their moves. It’s worth noting that while this figure was quite high, it is still lower than the amount hacked from decentralized finance (DeFi) protocols (roughly $14 billion).
Crypto Community Working to Make Exchange Security Stronger
As one would expect, news of these staggering losses has unsettled many members within the crypto community, spurring them into action to ensure such events don’t happen again in the future. Many experts believe stronger regulations need to be implemented across all exchanges and wallets so as to prevent similar scenarios from unfolding yet again.
Hackers Targeting Other Areas As Well
It isn’t just centralized exchanges being targeted by hackers; decentralized finance (DeFi) protocols have also been hit hard over the past year or so — losing around $14 billion overall — further highlighting how vulnerable digital assets can be if adequate security measures aren’t taken seriously enough.
Conclusion
In conclusion, centralized exchanges have lost an incredible amount of money over the past decade due to hacking incidents — with more than $10 billion stolen since 2012 alone — and things don’t seem likely to improve anytime soon unless preventive measures are taken seriously by both users and companies alike.