Hacker Activity in DeFi Space Becomes a Full-Time Job, Security Expert Says
According to the founder of blockchain security firm ImmuneFi, hackers have made decentralized finance (DeFi) protocols a “full-time job”. Speaking at Web Summit 2024, ImmuneFi founder Mitchell Amador stated that DeFi hacking has become “an infinitely sustainable and viable business”, although the crypto space is “unquestionably” getting safer.
The Rise of DeFi Hacking
DeFi hackers, Amador said, are “looking for more damage, more than ever” and their skills are also applicable in a number of different areas. He explained that, “even if they’re not getting sustainable hacks over the interim, they could be doing MEV, or other ways to monetize their very unique skillset.”
Despite the Risks, the Crypto Space is Getting Safer
Amador told Decrypt that the crypto space is “getting much safer, and at a very quick clip.” He pointed to the results of ImmuneFi’s Q3 2024 report, which found that losses from crypto hacks had dropped by 38% year-over-year, to just under $424 million.
DeFi Hackers are Getting More Sophisticated
Amador highlighted the October 2024 hack of Radiant Capital for $50 million as an example of the increasing sophistication of DeFi hacks, pointing to North Korean hackers. “They went after the private keys by compromising the underlying machines and spoofing transactions in this funky kind of man-in-the-middle attack, which is very exotic.” Hackers are increasingly using social engineering to exploit vulnerabilities in DeFi protocols, he said, adding that “human beings are always the weakest link.”
The Future of DeFi Security
In order to harden the world’s largest smart contract blockchain against attacks, ImmuneFi is hosting the Ethereum Protocol Attackathon, “the world’s largest code contest”, with a $1.5 million reward pool up for grabs.
Conclusion
In conclusion, the rise of DeFi hacking has become a full-time job for professional attackers, but the crypto space is getting safer. Despite the increasing sophistication of DeFi hacks, the industry is moving towards a safer and more secure future with the help of initiatives like the Ethereum Protocol Attackathon.
FAQs
Q: How has DeFi hacking changed?
A: DeFi hacking has become a full-time job for professional attackers, with an increasing focus on more damage and monetizing their skills.
Q: Is the crypto space getting safer?
A: Yes, the crypto space is getting much safer, with a 38% year-over-year drop in losses from crypto hacks.
Q: What is the future of DeFi security?
A: The future of DeFi security lies in initiatives like the Ethereum Protocol Attackathon, which aims to harden the world’s largest smart contract blockchain against attacks.
Q: How does the industry expect to benefit from the incoming Trump administration’s crypto-friendly policies?
A: The industry expects to benefit from increased pressure on European ministries to adopt crypto more aggressively and become more friendly, driven by the proposed U.S. strategic Bitcoin reserve.
Q: What is ImmuneFi planning to do next?
A: ImmuneFi is planning to expand into automated technologies, including a “pretty big AI agent” that will coordinate the crowdsourcing of proactive security measures.
Q: What is the goal of the Ethereum Protocol Attackathon?
A: The goal of the Ethereum Protocol Attackathon is to harden the world’s largest smart contract blockchain against attacks, with a $1.5 million reward pool up for grabs.
