Expect More DeFi Hacks in 2023: Warning from Blockchain Security Experts

Written by Joy Rice

The Founder of a Crypto Auditing Firm Suggests that Hackers are Becoming More Skilled and Experienced at Identifying and Exploiting Bugs

 

Decentralized finance (DeFi) investors can expect to experience a significant number of hacks and attacks in the coming year, according to executives from blockchain security firms HashEx, Beosin, and Apostro. These comments were made in an exclusive report by Drofa entitled “An Overview of DeFi Security In 2022,” which was shared with Cointelegraph.

While the security protocols of DeFi projects are expected to improve, Tommy Deng, Managing Director of Beosin, acknowledged that “there is no absolute security,” and that as long as there is interest in the crypto market, the number of hackers will not decrease. Many new DeFi projects also do not undergo complete security testing before going live, making them more vulnerable to attacks.

In addition, the use of cross-chain bridges, which were targeted in six attacks that resulted in $1.4 billion being stolen in 2022, is being explored by a significant number of projects. The CEO and founder of HashEx, Dmitry Mishunin, also noted that hackers have become more skilled and experienced at identifying and exploiting bugs. The value of some DeFi projects makes them particularly attractive to malicious actors, and the number of hacks is expected to continue to grow.

These attacks may also extend beyond the DeFi sector to target crypto exchanges and banks offering secure solutions for storing digital assets. However, Tim Ismiliaev, co-founder of smart contract security and auditing firm Apostro, believes that the DeFi space will mature over the next five years, leading to the emergence of new best practices for securing decentralized finance protocols.

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