DeFi Hacks Are Now a ‘Full-Time Job’ for Attackers

Hacking decentralized finance (DeFi) protocols has become a “full-time job” for professional attackers, according to Mitchell Amador, founder of blockchain security firm ImmuneFi.

Speaking to Decrypt at Web Summit 2024, Amador described DeFi hacking as “an infinitely sustainable and viable business,” even as the broader crypto industry becomes safer.

Crypto Security Is Improving

While DeFi attackers are increasingly skilled and ambitious, Amador noted that the crypto space is “unquestionably” safer.

Key insights from ImmuneFi’s Q3 2024 report:

• Crypto losses from hacks dropped 38% year-over-year to $424 million.
• Year-to-date crypto losses stand at just over $1 billion, compared to $3 billion in 2022 and $1.8 billion in 2023.
• “On a per capita basis, the risk per dollar of value is going off a cliff,” Amador said, citing increased industry value and on-chain assets.

While hacking incidents are up, major exploits have declined. Amador highlighted the $50 million October 2024 hack of Radiant Capital as an example of increasing sophistication. The attack, likely orchestrated by North Korean hackers, used man-in-the-middle attacks and compromised private keys via social engineering.

“Human beings are always the weakest link,” Amador emphasized.

Ethereum’s $1.5 Million Security Contest

To further bolster blockchain security, ImmuneFi is hosting the Ethereum Protocol Attackathon—a massive code contest with a $1.5 million reward pool.

“We’ve got hundreds and hundreds of hackers throwing themselves at the Ethereum code base,” Amador said. The event, unprecedented for Ethereum, aims to uncover critical vulnerabilities before the blockchain’s next major iteration.

Amador hopes the Attackathon becomes a recurring initiative, “hardening” Ethereum’s infrastructure over time.

Trump’s Crypto Policies and Industry Impact

Looking ahead, Amador believes the incoming Trump administration and its pro-crypto stance could be a significant catalyst for growth. Trump’s proposed U.S. Bitcoin reserve, Amador said, is pressuring European nations to adopt crypto-friendly policies more aggressively.

“It does seem like it’s going to be a huge net benefit to the industry,” he added, predicting increased growth and security activity.

Future of Blockchain Security

ImmuneFi itself is evolving, with plans to explore AI-driven automated technologies to enhance security. Amador teased an upcoming “AI agent” that will coordinate crowdsourced proactive security measures, signaling a shift for traditional bug bounty programs.

“We’re taking the next logical step for bug bounties,” Amador said, predicting that blockchain security will look “completely different” in two to three years.

While DeFi hacks have become a professional enterprise for attackers, the crypto space is rapidly improving its defenses. Initiatives like Ethereum’s Attackathon, combined with advances in AI and global pro-crypto policies, aim to harden blockchain ecosystems for the future.

Amador’s outlook signals not just a safer DeFi landscape, but a transformative era for blockchain security as innovation accelerates.