20 October, 2022 | 10:26 AM

According to an analyst, crypto hacking is expected to reach all-time highs in 2022.

According to an analyst, crypto hacking is expected to reach all-time highs in 2022.

Chainalysis's Director of Research, Kim Grauer, explains why the amount of cryptocurrency stolen in hacks is rising and offers suggestions for reversing this potentially harmful trend.

Kim Grauer, director of research at Chainalysis, a blockchain intelligence company, stated, "The crypto industry should consider it a top priority to reduce the amount of hacking by improving cybersecurity."
The company pointed out that the amount of stolen cryptocurrency this year could surpass that of 2021.Decentralized finance has been the target of the vast majority of these exploits.


In an interview with Crypto Express  Grauer stated, "This can't continue in the industry because people are going to lose faith in investing in DeFi platforms."
Decentralized protocols have proven to be vulnerable to exploits primarily due to the open source code they are based on, in contrast to centralized exchanges, which have improved their resilience to crypto hacks.
Grauer provided an explanation, stating, "Anyone can parse over this open source code and look for code vulnerabilities that they can exploit."


Still, the researcher thinks that decentralized finance's vulnerability to hacks is not a problem in and of itself, but rather a result of not enough resources being invested in code security.
She emphasized, "There are contracts that have demonstrated that they can remain secure."
Grauer believes that decentralized protocols could become more secure than centralized counterparts once sufficient resources are invested in making the code "perfect."