Nearly 40% of virtual asset hacking losses were caused by private key theft rather than smart contract vulnerabilities.
According to international reports on Monday, DeFiLlama calculated that the total losses from hacks, DeFi attacks, and bridge exploits in the cryptocurrency space have reached 16.69 billion USD. Approximately 40% of these losses were attributed to private key leaks or thefts.
Private keys are essential for proving ownership of a crypto wallet and transferring assets. Unlike bank account passwords, private keys cannot be reset if compromised or lost. If an attacker obtains a private key, they gain full control over the assets in the associated wallet.
Web3 security firm CertiK recently reported a trend of increasing security incidents during operations, while attacks exploiting smart contract vulnerabilities are decreasing. They suggest that as projects heavily invest in smart contract security, other crucial security areas have become comparatively vulnerable.
U Wish Paros, co-founder and Chief Executive Officer (CEO), stressed that the crypto industry must treat security as an ongoing priority rather than a one-time check. He emphasized that security should be integrated throughout the entire development, deployment, and operational lifecycle.