April 19, 2024
Crypto Hacking Losses Down Almost 50% In 2023
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Crypto Hacking Losses Down Almost 50% In 2023

According to blockchain intelligence firm TRM Labs, cryptocurrency hacking losses in 2023 have declined by over 50% compared to 2022. TRM Labs attributes this reduction to improved security measures, law enforcement efforts, and increased coordination within the industry.

Their report, released on December 13, points to a decrease in losses from 160 crypto project hacks to approximately $1.7 billion in 2023, a significant drop from the $4 billion stolen in 2022.

The decline in cryptocurrency theft is attributed to advancements in security, with the industry implementing real-time transaction monitoring and anomaly detection systems. Digital wallets and exchange platforms have strengthened their security measures in response to cyber threats.

TRM Labs’ research emphasizes the global efforts of law enforcement agencies against cybercrimes in the cryptocurrency sphere. Increased collaboration, swift responses, and improved asset recovery tactics have elevated the likelihood of detection and prosecution, acting as a deterrent for potential hackers.

In 2023, the cryptocurrency industry, including exchanges, blockchain networks, and wallet providers, adopted a collaborative approach by sharing information about vulnerabilities, threats, and breaches. This united front has contributed to a more robust defense against cybercriminals.

The report notes that over 60% of total losses in 2023 resulted from infrastructure attacks, particularly those involving private key theft or compromises in seed phrases. Large-scale attacks on specific targets accounted for a significant portion of the losses, with the top ten hacks responsible for approximately 70% of the total funds stolen.

While the report highlights a decrease in hacking incidents, it underscores the evolving nature of cyber threats. It emphasizes the need for continued vigilance and adaptability within the cryptocurrency industry and law enforcement to sustain this positive trend in a rapidly changing landscape.

In the initial eight months of 2023, the crypto industry incurred nearly $1 billion in losses due to hacks, exploits, and scams. Notable incidents included over $100 million in digital asset losses, with the HECO Chain bridge hack alone responsible for more than $80 million in theft.

Image by DCStudio on Freepik

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