In the blockchain world, there are few things more important than security. With billions of dollars at stake, it is critical that blockchain projects take every precaution to ensure that their networks are secure. Unfortunately, not all projects do this - and as a result, they are vulnerable to cyber attacks. In this article, we will explore 10 of the biggest and most damaging defi hacks in history. We will describe each hack, the project targeted, how much money was stolen, and technical aspects of the hack. We will also mention that getting a DeFi project's smart contracts audited is a good way to prevent such hacks.
The Harvest Finance Hack: In October 2020, attackers exploited Harvest Finance’s smart contracts to drain over $24 million from the platform's users. This was done by exploiting a vulnerability in the project's code which allowed hackers to transfer funds out of user wallets and into their own accounts.
The dForce Attack: In April 2020, hackers broke into dForce’s blockchain network and stole over $25 million worth of cryptocurrency. The attack was sophisticated and involved rerouting fund transfers through a malicious address that had been set up by the attackers. It took several days for dForce to uncover the attack and shut down its blockchain network in order to prevent further losses.
The Meerkat Finance Hack: In March 2020, hackers exploited a vulnerability in Meerkat Finance’s code to steal over $31 million worth of crypto. The attack was discovered after the attackers had already transferred their stolen funds to another address.
The Balancer Attack: In June 2020, hackers used automated scripts to exploit a vulnerability in Balancer’s code and steal over $500,000 worth of cryptocurrency. The hack occurred when the attackers were able to take advantage of a bug that allowed them to withdraw more funds than they had deposited into their wallets.
The Pickle Finance Hack: In October 2020, an attacker exploited a vulnerability in Pickle Finance’s blockchain network and drained over $20 million worth of funds. The attack involved exploiting a bug in the platform’s code that allowed the attacker to withdraw more funds than they had deposited into their wallet.
The Akropolis Hack: In August 2020, hackers exploited a vulnerability in Akropolis’ blockchain network and siphoned off over $2 million worth of cryptocurrency. This attack was particularly sophisticated as it involved deploying malicious contracts on the blockchain which allowed the attacker to move stolen funds out of the blockchain without being detected.
The bZx Attack: In February 2020, attackers successfully exploited a vulnerability in bZx’s blockchain network and stole over $8 million worth of crypto. This hack was particularly damaging because it exposed a critical flaw in the blockchain protocol which allowed attackers to manipulate prices of certain assets and cash out quickly without being detected.
The Alpha Finance Lab Hack: In September 2020, hackers exploited a vulnerability in Alpha Finance Lab’s blockchain network and stole over $37 million worth of crypto. This attack was particularly damaging because it exposed a critical flaw in the blockchain protocol, allowing attackers to take advantage of a bug that allowed them to withdraw more funds than they had deposited into their wallets.
The dYdX Attack: In June 2020, hackers exploited a vulnerability in dYdX’s blockchain network and siphoned off over $1 million worth of cryptocurrency. This attack was particularly sophisticated as it involved deploying malicious contracts on the blockchain which allowed the attacker to manipulate prices of certain assets and cash out quickly without being detected.
The bZx Attack: In March 2020, hackers successfully exploited a vulnerability in bZx’s blockchain network and stole over $8 million worth of cryptocurrency. This attack was particularly damaging because it exposed a critical flaw in the blockchain protocol which allowed attackers to manipulate prices of certain assets and cash out quickly without being detected.
These hacks demonstrate that blockchain-based platforms are vulnerable to attack, even if they have been thoroughly audited. It is important for DeFi projects to ensure their smart contracts are secure by getting them regularly audited by experienced professionals. If these attacks have taught us anything