In a continuation of an alarming trend, hackers managed to siphon off billions of dollars in cryptocurrency throughout 2023. However, there’s a notable shift in the narrative this year, marking a downward trajectory in crypto theft incidents, according to insights provided by crypto security firms.
For the first time since 2020, the crypto community witnessed a decrease in the frequency of hacks, a revelation shared by crypto security firms. Despite this positive shift, the total amount stolen reached a staggering $2 billion in 2023, as reported by De.FI, is a prominent web3 security firm renowned for its REKT database. The REKT database ranks and documents some of the most significant crypto hacks, ranging from the infamous Ronin network breach in 2022 to the more recent attack on the Mixin Network, resulting in approximately $200 million in losses.
De.FI’s report emphasizes the enduring vulnerabilities within the decentralized finance (DeFi) ecosystem. The dispersed nature of these incidents underscores the challenges that persist in safeguarding crypto assets. The report notes that 2023 highlighted both the ongoing vulnerabilities and the strides made in addressing them, all while the crypto space faced relatively muted interest due to the bearish market conditions in the first half of the year.
Corroborating the findings, blockchain intelligence company TRM Labs released its estimate of the total crypto stolen by hackers in 2023, placing the figure at approximately $1.7 billion in mid-December. This aligns with the overall narrative of a slight decline in theft incidents compared to previous years. Several significant hacks punctuated the crypto landscape in 2023. Notable among them was the attack on Euler Finance, resulting in losses nearing $200 million. Other major incidents targeted Multichain ($126 million), BonqDAO ($120 million), Poloniex ($114 million), and Atomic Wallet ($100 million), among numerous others.
Looking back, 2022 saw cybercriminals steal a record-breaking $3.8 billion in crypto, with the infamous Lazarus Group responsible for $1.7 billion. This North Korean government-backed group aimed to fund the nation’s sanctioned nuclear weapons program through cryptocurrency theft and the year 2021 also witnessed significant losses, with hackers making off with $3.3 billion, according to reports from Chainalysis.
As the crypto and web3 industries grapple with inadequate security measures, coupled with the substantial value they hold, the article concludes by speculating on the potential trajectory of crypto hacks in 2024. Given the persistent vulnerabilities in the sector, the industry must remain vigilant in fortifying its defences against the relentless pursuit of cybercriminals.
