ImmuneFi inventor Mitchell Amador says encryption is increasingly safer despite “professional DeFi attackers.”
The creator of blockchain security startup ImmuneFi says experienced attackers now hack DeFi protocols as a “full-time job”.
ImmuneFi creator Mitchell Amador told Decrypt at Web Summit 2024 that DeFi hacking is “an indefinitely sustained and profitable business” even if crypto is “unquestionably” growing safer.
He added DeFi hackers are “looking for greater harm, more than ever—and their talents are also relevant in a lot of other areas.” He said, “Even if they’re not receiving sustained hacks during the interim, they may be doing MEV or other methods to monetize their extremely unique skill set.”
However, Amador told Decrypt that crypto is “getting significantly safer, and at a very rapid clip.” ImmuneFi’s Q3 2024 report showed that crypto hack losses reduced 38% to about $424 million.
Amador claimed crypto hack losses had reached “just over a billion dollars,” compared to $3 billion in 2022 and $1.8 billion in 2023. “This is despite the sector and on-chain asset values rising. So, the danger per dollar of value is cliff-diving per capita. Despite an increase in hacking, we’re seeing relatively few of the huge cases.”
The $50 million Radiant Capital attack in October 2024, blamed on North Korean hackers, showed the complexity of DeFi hacks. “They compromised the underlying computers and spoofed transactions in this unusual man-in-the-middle attack to get the private keys.” He stated, “Human beings are always the weakest link,” and that hackers are increasingly employing social engineering to target DeFi protocol weaknesses.
The Ethereum Protocol Attackathon, “the world’s biggest code challenge,” is being held by ImmuneFi with the goal of securing the largest smart contract blockchain in the world. The prize pool for this event is $1.5 million.
“Hundreds and hundreds of hackers,” Amador added. “They will all be showcasing their ability to identify mission-critical flaws and disclose them in a timely manner by swarming the Ethereum code base with $1.5 million at stake.”
“This is a unique sort of process that the Ethereum Foundation has never done before,” he added, hoping the contest becomes a recurring event “hardening each and every single significant iteration of the blockchain.”
Blockchain security is “the most picks-and-shovels, steady element of the crypto industry,” but Amador expects the incoming Trump administration’s crypto-friendly stance to benefit the sector “indirectly”.
Amador claimed Trump’s planned U.S. strategic Bitcoin reserve is “creating pressure” on European ministries to “begin embracing crypto more aggressively and to become much more favorable as a result,” adding, “I’ve seen this with my own eyes.”
“It does seem like it’s going to be a great net advantage to the sector in terms of overall industry development and friendliness,” he added.
ImmuneFi plans to expand into “automated technologies,” including a “pretty substantial AI agent” for gathering “proactive security measures,” Amador added.
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