Crypto Owners Bemoan Booming Business Of Hacking

Despite the much-hyped watertight security features of blockchain technology, hackers are still enjoying their trade in the crypto business space.

Traditionally, one of the obstacles to the mainstream adoption of digital currency has been hacking, such that some high-profile thefts have occurred on various cryptocurrency exchanges and platforms, deterring investors from putting their money in them. 

In one of the most high-profile attacks in cryptocurrency history, the Binance exchange was hacked for $570 million in October 2022.

A cross-chain bridge, BSC Token Hub, was exploited by hackers, resulting in the creation of extra Binance Coins (BNB) and the withdrawal of 2 million BNB tokens.

BNB is the native token of the crypto exchange. A bug in a smart contract enabled the hack, highlighting the need for tighter blockchain security.

Cryptocurrency ransomware fell to $456.8m in 2022 as victims refused to pay, according to Chainalysis.

In its recently released ‘Crypto Crime’ report, the blockchain analytical firm stated that victims’ payments have fallen from 76 per cent in 2019 to 41 per cent in 2022.

It stated that this is because ransom payments have become legally riskier, following a U.S. Department of the Treasury’s Office of Foreign Assets Control advisory in September 2021 on the potential for sanctions violations when paying ransoms.

The firm said, “Based on the data available to us now, we estimate that 2022’s total ransomware revenue fell to at least $456.8 million in 2022 from $765.6 million in 2021 — a huge drop of 40.3 per cent.

“However, the evidence suggests that this is due to victims’ increasing unwillingness to pay ransomware attackers rather than a decline in the actual number of attacks.”

It also stated that in 2022, cyber insurance firms had taken the lead in tightening not only who they insured but also what insurance payments can be used for, and were much less likely to allow their clients to use an insurance payout to pay a ransom.

In 2021, OFAC said, “Ransomware payments benefit illicit actors and can undermine the national security and foreign policy objectives of the United States.”