In May, a hacker attack resulted in the loss of 4,502.9 bitcoins worth $305 million from the Japanese cryptocurrency exchange DMM Bitcoin. The platform’s private keys were compromised. In July, attackers attacked the Indian crypto exchange WazirX and withdrew $230 million worth of assets from its hot wallet.

DeFi projects have proven to be more resilient to hacker attacks thanks to multi-party computation (MPC) protocols, zero-knowledge proofs (ZKPs), and improved bridge security, Hacken explained. MPC allows multiple parties to jointly manage private keys without having to disclose them, while ZKPs allow transactions to be verified on the blockchain without revealing sensitive data.

However, attackers have still managed to successfully attack several DeFi platforms. At the very beginning of the year, the Radiant Capital lending protocol was subjected to a major attack, with 1,900 ETH worth $4.5 million stolen. In January, hackers gained access to the decentralized Orbit Bridge, were able to bypass security checks and authorize malicious transactions, which helped steal $81 million in crypto assets.