As Stablecoin Popularity Grows, So Grows The Threat Vectors
When it comes to cryptocurrency buzz, stablecoins are the new Bitcoins. No one is going to get rich off them. But just like Bitcoin (CRYPTO: BTC) holders, stablecoin holders can also lose their shirt as exploit trends are on the rise, a new report by CertiK shows.
According to the report, “a number of important exploit trends have emerged around stablecoin infrastructure over the last 18–24 months.” CertiK highlights blockchain bridges, interoperability protocols, custody systems, and fintech payment systems. “As stablecoins evolve into core settlement infrastructure rather than simply trading assets, attackers have increasingly shifted their focus toward the operational and infrastructural layers surrounding them,” report authors wrote.
So far this year, bridge incidents among two separate blockchains are estimated to be at least $328 million stolen. The Kelp DAO wallet breach was the biggest, accounting for $291.3 million in April. Drift Protocol (CRYPTO: DRIFT) came in second on April 1, getting soaked for $285 million.
Beyond the DeFi protocols, custody and infrastructure systems are in the crosshairs now. What’s safe?
From Wallet Theft to Breached Infrastructure Walls
Attackers are now going after weaknesses in stablecoin custody and treasury infrastructure rather than attacking the DeFi protocols directly, according to the CertiK report, released June 5.
From the report:
Institutional adoption of stablecoins has led to the growth of programmable treasury systems, custodial platforms, fiat on- and off-ramps, and automated settlement infrastructure that has become a new attack vector. These systems have introduced more centralized risks, and have led to compromised private keys and insider threats; API vulnerabilities and cloud infrastructure misconfigurations; and an overall weakness in access-control systems that make for easier exploits.
“As stablecoin infrastructure becomes more integrated with traditional financial systems, attackers are increasingly targeting operational security failures alongside on-chain vulnerabilities,” report authors wrote. Networks heavily used for remittances and stablecoin transfers have become the …
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