December 2022 Sees Lowest Crypto Attack Losses of the Year

• December 2022 was the worst year for crypto attacks, with $3.7 billion lost in scams and hacks throughout the year.
• December was the least harmful month of the year in terms of crypto attacks, with only $62 million lost in stolen tokens, scams, or hacks.
• The two most notable crypto attacks in December 2022 were the Defrost Finance $12 million hack and Helio Protocol $15 million exploit.

Crypto attacks in December 2022 constituted relatively low losses compared to the previous year. According to a Coindesk report, December had the least number of crypto attacks for 2022. Despite being the worst year for crypto attacks, the month of December provided a few cheer-worthy instances for market participants.

While an overwhelming $595 million worth of crypto-based attacks happened in November 2022, the crypto attacks in December constituted losses of $62 million. This made December the least harmful month of the year, in terms of crypto attacks.

The two most notable crypto attacks in December 2022 were the Defrost Finance $12 million hack and Helio Protocol $15 million exploit. The Defrost Finance hack was the result of an exploit of the protocol’s flash loan feature. Attackers used the feature to steal a total of $12 million in tokens, including Wrapped Bitcoin (WBTC), Yearn Finance’s YFI, and Compound’s COMP tokens, among others. The Helio Protocol exploit happened when malicious actors manipulated the protocol’s liquidity pools, stealing $15 million in funds in the process.

Despite these two major attacks, the total amount of money lost in December 2022 was relatively low compared to previous months. This could be attributed to the increasing awareness of users about the potential risks of engaging in cryptocurrency activities.

The Coindesk report noted that the number of crypto scams and hacks has been increasing steadily since 2018. The report also noted that the number of successful attacks has risen steeply since 2020. The increasing number of attacks has been attributed to the increasing acceptance of cryptocurrency as a legitimate asset class.

In conclusion, while December 2022 was the worst year for crypto attacks, the month of December constituted relatively low losses, making it the least harmful month of the year. This could be attributed to the increasing awareness of users about the potential risks of engaging in cryptocurrency activities, as well as the increasing acceptance of cryptocurrency as a legitimate asset class.