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303 hacks. $3.77 B lost. 2022 makes a new record
In today’s dispatch we have:
2022 a record year - $3.7B lost in scams
Hong Kong wants to be a crypto hub
Animoca Brands plans to raise $1 B for Web3
The SlowMist 2022 Annual Blockchain Security and AML Analysis Report has arrived, and it's filled with all the nerdy details on attacks, hacks, and other security incidents in the Web3 sphere.
And 2022 witnessed a record-breaking number of scams on major platforms. So, let's geek out on the details for a while:
303 blockchain security incidents in 2022 - 28.3% increase from 2021.
Total losses - $3.77 billion.
DeFi security incidents accounted for the majority of losses - $2.075b.
BNB Chain took the biggest hit - $785M.
Cross-chain and NFT incidents contributed to losses of $1.212 billion and $65.44 million (phishing attacks caused 39% of them).
Major attack methods:
phishing, rug pulls and scams
private key compromise.
Ten security incidents cost hundreds of millions of dollars, with 4 being cross-chain bridge incidents.
Initial funding for these incidents often came from Tornado.Cash and other trading platforms.
2022 AML dynamics:
Tether: 250 ETH addresses blocked, with the USDT-ERC20 on them frozen.
Circle: 126 ETH addresses blocked, with USDC-ERC20 frozen.
TornadoCash: 1,233,129 ETH Deposits and 1,283,186 ETH withdrawals.
ChipMixer: 40,065.33 BTC Deposits and 22,582.44 BTC withdrawals.
What did regulators come up with:
Federal Bureau of Investigation - new Virtual Assets Unit.
The US Department of Justice - a national network of prosecutors focused on fighting cryptocurrency crime.
US Department of Treasury imposed sanctions on Ronin Network hackers and Blender crypto mixer's addresses, a first-ever on a crypto mixer platform.
Also, sanctions on the Ethereum cryptocurrency mixer Tornado.Cash, and sanctioned 38 addresses.
Blockchain security analysts come up with:
Chainalysis - SanctionsList, a database contract that blackliasts 177 addresses.
SlowMist - MistTrack, an anti-money laundering tracking system to crack down on AML.
Hong Kong desires to become a crypto hub despite the industry crisis
Hong Kong is like that one friend who's always down for a good time, no matter what crisis is happening.
And the crypto scene? It's the party Hong Kong wants to be at. Despite the recent industry turmoil, Hong Kong is determined to be the life of the crypto party and establish itself as a leading centre for the blockchain and cryptocurrency industry.
The city's pro-business regulatory environment, world-class infrastructure and large talent pool make crypto projects a favourable place to grow.
The city has already seen several crypto companies establish a presence, including major exchanges like Binance and OKEx. It has also attracted several blockchain-based projects, such as the IOTA Foundation and Ethereum Classic, which have established their R&D centres in Hong Kong.
In addition to the private sector, Hong Kong's government has also shown support for the crypto industry. The city's Securities and Futures Commission (SFC) has issued guidelines for regulating crypto assets, which aim to provide a balance between fostering innovation and protecting investors.
As the industry continues to evolve and mature, it will be interesting to see how Hong Kong's efforts to establish itself as a crypto hub play out.
Animoca Brands plans to raise $1 Billion for the Web3 fund
Animoca Brands Corp. plans to raise around $1 billion this quarter for its new Web3 and metaverse investment fund, significantly reducing its ambitions amid the current crypto sector catastrophe. Last year, the same fund had a $2 billion upper limit.
The fund will be called the "Web3 Ventures Fund" and will target projects that are built on blockchain technology and have the potential to drive the growth and adoption of web3 technologies.
Animoca Brands is a well-established player in the gaming industry, with a portfolio of popular mobile games such as "The Sandbox" and "F1 Delta Time." It has also been an early adopter of blockchain technology, with several games incorporating blockchain-based assets and in-game economies.
It seems like Animoca Brands, along with other venture capitalists, are feeling a little bit like a kid in a candy store with too many options and not enough money. With the recent market slowdown and uncertain macroeconomic conditions, VCs have had to tighten their purse strings and not invest as much as they would like.
According to Messari figures, December was a bit of a "bah-humbug" month, with investments dropping 21.5% from $840 million in November to $660 million in December.