Beosin executive predicts more hacks on DEXs in 2023

Image credit: Timmy Loen

More decentralized exchanges (DEXs) are likely to be hacked this year due to the sheer number of emerging players, says Tommy Deng, managing director of Singapore-based cybersecurity firm Beosin.

The FTX crash, which has generated a loss of trust among centralized exchanges, has led to a boom in DEXs. However, Deng warned that DEX founders should audit their platform before launching.

The Beosin executive also expects more hacks to occur in projects requiring cross-chain bridges and that decentralized finance will still be a hot topic among cybersecurity professionals.

Despite the prevailing bearish sentiment, Deng is confident that the market will bottom out. His company has started accepting up to 50% of payments in crypto tokens this year. But he cautions that this payment scheme depends on the credibility and previous valuations of the project.

According to Beosin data, global crypto crimes accounted for US$13.76 billion in 2022, excluding financial misdeeds such as the collapse of Terra and FTX. Money laundering amounted to US$7.33 billion, attacks or exploits hit US$3.6 billion, and pyramid schemes reached US$1 billion. Scams amounted to $830 million, and about half of them were due to rug pulls.

Beosin raised a US$20m series A round in November 2022.

See also: Does Huobi have a ticking time bomb on its hands?