Blockchain & Cryptocurrency
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Cryptocurrency Fraud
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Fraud Management & Cybercrime
Security Firm Stresses Importance of Cybersecurity in Crypto Projects
Amid a surge in cryptocurrency investment – particularly across decentralized finance, or DeFi – blockchain experts warn that lax security, including “centralization risks” and other code weaknesses, was a main factor in $1.3 billion in cryptoassets being lost to hacks, exploits and scams in 2021. The losses, according to blockchain security firm CertiK, rose from $500 million in 2020.
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In its new report, entitled The State of DeFi Security 2021, CertiK researchers say, however, that due to the uptick in investment, 2021 losses represented just 0.05% of crypto’s total market capitalization – dropping 17% from 2020.
CertiK credits much of the growth in digital currencies to the rise of Binance Smart Chain, whose total value locked, or TVL, grew from $62 million to $21 billion in 2021 – a 31,000% increase, the firm says.
But the rise of DeFi protocols – which do not rely on traditional intermediaries and instead run on…
