The Dark Side of Decentralized Finance: North Korean Hackers Steal $1.7 Billion in Cryptocurrency in 2022!

The Dark Side of Decentralized Finance: North Korean Hackers Steal $1.7 Billion in Cryptocurrency in 2022!

Cryptocurrency has been one of the hottest topics in the financial world in recent years, with more and more people investing in digital currencies. However, as the popularity of cryptocurrencies has increased, so too has the number of hacking incidents. In 2022, a record $3.8 billion worth of cryptocurrency was stolen, with much of the theft driven by North Korean-linked hackers, according to a report by blockchain analytics firm Chainalysis. The North Korean hackers stole an estimated $1.7 billion worth of cryptocurrency through various hacks in 2022, up from $429 million in 2021.

In addition to hacking cryptocurrency firms, suspected North Korean hackers have posed as other nationalities to work at such firms and send the stolen money back to Pyongyang, US agencies have warned. The decentralized finance (DeFi) industry has become the main target of hackers, accounting for more than 80% of all cryptocurrency stolen in 2022. DeFi protocols replace traditional financial institutions with software that allows users to transact directly with each other via the blockchain, the digital ledger that underpins cryptocurrencies.

Of the attacks on DeFi systems, 64% targeted cross-chain bridge protocols, which allow users to exchange assets between different blockchains. Bridge services typically hold large reserves of various coins, making them attractive targets for hackers. The thefts on Axie Infinity and Harmony were both bridge hacks, highlighting the vulnerability of these systems to cyber-attacks.

Also Read: Axie Infinity recovers stolen cryptocurrency

The rise of North Korean hackers to cryptocurrency hacks is a threat to the DeFi industry, which is still in its early stages of development. While DeFi offers numerous benefits over traditional finance, such as greater transparency and accessibility, it is also more susceptible to security threats. Hackers are attracted to DeFi because of the large amounts of cryptocurrency that are stored in these protocols.

To address the security concerns in the DeFi industry, it is crucial that DeFi protocols implement robust security measures to prevent hacks and protect users’ funds. This includes implementing multi-signature security, ensuring that user funds are stored in secure, decentralized wallets, and implementing regular audits of the system.

Also Read: How to stay safe from crypto hacks this year?

The rise of North Korean-linked cryptocurrency hacks is a growing concern for the DeFi industry and we all must be very careful of these hacks. As the popularity of DeFi continues to grow, it is essential that DeFi protocols implement robust security measures to protect users’ funds and ensure the long-term viability of the DeFi industry. While the DeFi industry offers numerous benefits over traditional finance, security must be a top priority if DeFi is to reach its full potential.

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Dingo Token Scam Unveiled: How a 99% Transaction Fee Backdoor Cost Investors Millions!

Dingo Token Scam Unveiled: How a 99% Transaction Fee Backdoor Cost Investors Millions!

The world of cryptocurrency is no stranger to scams and fraudulent activities, with unsuspecting investors losing millions of dollars every year. The latest addition to this growing list is the Dingo Token Scam (DINGO), a cryptocurrency that has been flagged as a potential scam by Check Point Research (CPR), the research arm of cyber security software firm Check Point.

Dingo Token made headlines after it rose 8,400% this year, which led CPR to take a closer look at the project. Upon investigating the code behind the Dingo Smart Contract, CPR discovered a backdoor function, “setTaxFeePercent,” that allows the project owner to manipulate transaction fees and change the contract’s buy and sell fee by up to 99%. This is in stark contrast to the project’s whitepaper, which states that there is only a 10% fee per transaction.

Also Read: How to stay safe from crypto hacks this year?

The implications of this backdoor are far-reaching, as it essentially allows the project owner to withdraw up to 99% of the transaction amount whenever a user buys or sells the token. In one instance, CPR observed a user who spent $26.89 to purchase 427 million Dingo Tokens but instead received only 4.27 million, or $0.27 worth of Dingo Tokens. The firm found at least 47 instances of the function being used to scam token investors.

Dingo Token’s rise to fame is a cautionary tale for investors looking to put their money into the cryptocurrency market. With the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs), the market has become increasingly crowded and cluttered, making it harder for investors to separate the wheat from the chaff. This is why it’s crucial to thoroughly research any investment before putting money into it.

Also Read: How to Prevent Being Scammed by Cryptocurrency?

In response to the scam, CPR has urged all Dingo Token investors to withdraw their investments and to be cautious when investing in cryptocurrencies in the future. The firm has also reported the scam to relevant authorities, and an investigation is ongoing.
The Dingo Token scam serves as a warning to investors to be vigilant when investing in cryptocurrencies and to always research the project and its code thoroughly before investing. With the rise of decentralized finance and NFTs, the cryptocurrency market is becoming increasingly complex, and investors must be wary of scams and fraudulent activities.

The Dingo Token scam likewise highlights the importance of due diligence in the cryptocurrency market and the need for stricter regulations and oversight to protect investors from scams and fraudulent activities. The market is still in its infancy, and as it continues to grow and mature, it’s crucial that investors are protected from these types of scams and fraudulent activities.

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