TL;DR
- According to Peckshield, there was a 27.78% decrease in cryptocurrency theft in 2023. Losses dropped from $3.6 billion in 2022 to $2.61 billion in 2023.
- Over $674 million, 25% of the stolen funds, were recovered.
- The trend shifted from Bitcoin to Stablecoins in terms of theft.
According to Peckshield, a blockchain security specialist firm, there was a significant 27.78% decrease in cryptocurrency theft incidents throughout 2023. This decline is reflected in a reduction of economic losses, decreasing from over $3.6 billion in 2022 to $2.61 billion in 2023.
One of the most important points in this report is the recovery efforts, as over $674 million, representing 25% of the stolen funds, were successfully retrieved. This recovery rate marks a substantial improvement compared to the $133 million recovered in 2022.
Strategies adopted by affected companies, such as negotiations with perpetrators and the implementation of vulnerability reward programs, played a crucial role in the increased recovery rate. Additionally, collaboration with exchange platforms, Tether, and law enforcement also played a fundamental role in fund recovery.
#PeckShieldAlert 2023 saw 600+ major hacks in the crypto space, resulting in ~$2.61B in losses, with $674.9M recovered.
$1.51B lost to hacks (excluding #Multichain unauthorized withdrawals) & $1.1B to scams. This marks a 27.78% decrease from 2022. #DeFi protocols remained prime… pic.twitter.com/G7PIU3WyrX— PeckShieldAlert (@PeckShieldAlert) January 29, 2024
PeckShield’s report reveals that 40% of cyber theft incidents in 2023 were linked to flash loans. Despite this trend, malicious actors continued to focus on the decentralized finance (DeFi) sector, which accounted for 67% of the total losses. The remaining 33% was distributed in the centralized finance space.
According to Peckshield, Cryptocurrency Theft Shifted From Bitcoin to Stablecoins
A notable aspect is the shift in cryptocurrencies used in illicit transactions. During the years 2018 to 2021, Bitcoin prevailed as the primary choice for criminals. However, in 2022 and 2023, a shift towards stablecoins in this criminal context was observed.
The improvement in the recovery rate suggests that negotiation strategies and reward initiatives proved to be effective. PeckShield brings some relief to the community with its report. It is essential for platforms, users, and law enforcement to work together, deepen prevention and security measures, and continue working towards the success of recovery rates. These are key objectives to clean up an industry historically affected by waves of cybercrime.
This will be crucial for the consolidation of the crypto ecosystem within the finance world and the promotion of its adoption and usage on a broader scale. We encourage users from various platforms to scrutinize their keys more rigorously, use 2FA, and follow general security practices. Additionally, pay special attention to phishing attacks, malicious links, and scams related to fake airdrops or potential gains that deviate from the industry’s reality.
