Crypto hacking losses plunge by nearly 50% in 2023: Report

Blockchain intelligence firm TRM Labs says losses from cryptocurrency hacking in 2023 are down more than 50% from 2022, thanks to improvements in industry security.

TRM Labs’ report published on Dec. 13 reveals that losses from 160 hacks to crypto projects amounted to about $1.7 billion in 2023, less than half the $4 billion stolen from internet protocols in 2022.

TRM Labs said the decline is due to enhanced security measures, which have seen the cryptocurrency industry incorporate real-time transaction monitoring and anomaly detection systems, strengthening digital wallets and exchange platforms.

In 2022, the crypto industry was in a downturn and suffered substantial thefts from crypto exploits and hacks. By mid-October, Chainalysis had already labeled 2022 as the “largest year ever for hacking activity.”

TRM Labs’ research report notes that law enforcement agencies worldwide have bolstered their efforts against cybercrimes in the digital currency sphere. Collaborative actions, quick responses, and better asset recovery tactics have heightened the chances of detection and prosecution, discouraging potential hackers.

In 2023, the industry, comprised of cryptocurrency exchanges, blockchain networks and wallet providers, adopted a collaborative approach by sharing information about vulnerabilities, threats and breach incidents, creating a solid defense against cybercriminals.

Related: North Korean hackers have stolen $2B of crypto since 2018: Report

TRM Labs said more than 60% of the total losses in 2023 resulted from infrastructure attacks, particularly involving private key theft or compromised seed phrases. A considerable portion of the losses came from large-scale attacks on specific targets, with the top 10 hacks responsible for around 70% of the total funds stolen.

Although the report records a decrease in hacking incidents, it also highlights the changing nature of cyber threats. It stresses that the cryptocurrency industry and law enforcement must stay vigilant and adaptable to maintain this positive trend in a swiftly changing landscape.

In the first eight months of 2023, the crypto industry experienced nearly $1 billion in losses due to hacks, exploits and scams. These hacks included over $100 million in digital asset losses in a hack on the Poloniex exchange, as well as the HECO Chain bridge hack, which was responsible for the theft of over $80 million.

Magazine: Real AI use cases in crypto, No. 3: Smart contract audits & cybersecurity

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Written by Amaka Nwaokocha on 2023-12-13 12:44:51.

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