/cdn.vox-cdn.com/uploads/chorus_asset/file/16222232/GettyImages_526595438.jpg "The cryptocurrency hacking problem is out of control and will get worse before it gets better")
How serious is cryptocurrency cybersecurity? Well, just watch the news. Last week started with news that North Korean hackers, who are stealing cryptocurrency to pay for their crazy dictator's nuclear weapons plans, had their best year ever in 2022, stealing $200 million in the year. This coincided with news that cryptocurrency betting platform Stake had been hacked for $42 million, and later this week fraudsters took control of Ethereum founder Vitalik Buterin X's (formerly Twitter) account, where they advertised cryptocurrency giveaways (what else ?) to steal this platform. Almost 700 thousand dollars.
This latest development is not surprising. Since the early days of Bitcoin, the cryptocurrency has been a trap for hackers who use the near-anonymous nature of the blockchain to steal from users, businesses, and others. From the tragic Mt.Gox hack in 2014 to Bitfinex in 2016 and the "sorry we lost $600 million" moment at Axie Infinity last year, mass heists are as common in the industry as Lambos and failed tattoo solutions.
The problem is that despite more than a decade of intense training, cryptocurrency cyber vulnerabilities are worse than ever. This latest round of hacks presents a bleak outlook for an industry trying to regain investor confidence after last year's FTX debacle, and it won't go down well with the US government, which is understandably concerned about the cryptocurrency funding of Kim Jong-un's army.
In truth, cryptocurrency is not the only industry that suffers from hackers. Cybercriminals have also wreaked havoc on hospitals, state governments, and many Fortune 500 companies. Combating hackers when they have the backing of a country (notably North Korea, but also China, Russia, and Iran) is no easy task. .
However, it seems that the cryptocurrency industry can do more. Although analytics firms such as Chainalogy and TRM regularly work with high-ranking law enforcement officials to track and sometimes seize stolen assets, many cryptocurrency companies consider security a top priority and prioritize security schemes. Revision. And anti-phishing.
In the short term, things could get worse. This is partly because state-sponsored hackers have become more adept at stealing digital assets, and because it has become easier to commit X-rated fraud since Elon Musk took office. Despite promising to remove bots and criminals from his platform, the billionaire made it easier for scammers to wreak havoc by removing his antiquated verification system.
It's only a matter of time before we hear about the next hacking disaster. If the industry wants to reverse this trend, blockchain projects need to work better with each other (and yes, even with governments) to improve their defenses.
Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts
This story originally appeared on Fortune.com
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