Crypto Hacks Set to Hit All-Time Highs in 2022, Analyst Says

Kim Grauer, Director of Research at Chainalysis, explains why the amount of crypto being stolen from hacks is increasing and what could be done to reverse it this dangerous trend.

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Reducing the number of hacks by improving cybersecurity should be considered a top priority for the crypto industry, said Kim Grauer, research director at blockchain intelligence firm Chainalysis.

As the firm pointed out, this year could surpass 2021 in terms of crypto being stolen through hacks. The vast majority of these exploits have targeted the area of ​​decentralized finance.

"It can't continue in the industry because people are going to lose faith in investing in DeFi platforms," ​​Grauer said in an interview with Cointelegraph.

Unlike centralized exchanges, which have improved their resistance to cryptographic hacks, decentralized protocols have proven to be vulnerable to exploits, primarily due to the open source code on which they are based.

“Anyone can analyze this open source code and look for code vulnerabilities they can exploit,” Grauer explained.

However, the researcher does not believe that vulnerability to hacks is an intrinsic problem of decentralized finance, but rather a consequence of not enough resources being invested in code-level security.

“Some contracts have proven that they can remain safe,” she pointed out.

Grauer thinks that once enough resources are invested in making the code "perfect", decentralized protocols could become more secure than their centralized counterparts.

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