Research Reveals a 50% Drop in Cryptocurrency Theft in 2023

Crypto Carnage: May Saw $42.6M Lost to Hacks and Scams
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Cryptocurrency theft has seen a notable decline in 2023 compared to the previous year, according to recent research from TRM Labs , a blockchain intelligence firm.

Cybercriminals achieved a loot of $1.7 billion in 2023 (Until mid-December), a figure that was significantly reduced by more than 50% compared to the $4 billion obtained in 2022,  according to data analyzed by DefiLlama .

Contrary to the common belief that falling cryptocurrency prices were the reason behind this decline, researchers at TRM Labs have pointed out that this decline is not primarily attributed to price fluctuation.

Instead, it stands out that stricter law enforcement actions and the implementation of better compliance controls have played a fundamental role in decreasing cryptocurrency theft.

Despite the decrease in theft, the number of attacks has remained stable, recording around 160 incidents in 2023, according to the findings.

The ten largest Theft accounted for almost 70% of the total cryptocurrency stolen

Specifically, infrastructure attacks, such as theft of private keys or compromised passphrases, made up almost 60% of the total amount stolen.

However, despite these encouraging figures, TRM Labs has warned of the possibility of the declining trend reversing in 2024 due to the emergence of new sophisticated threats.

The cryptocurrency industry is in a state of constant evolution and, as such, the need to remain vigilant and proactive to counter potential future threats is emphasized.

Research Reveals 50% Drop in Cryptocurrency Thefts in 2023

Additionally, some cases of cryptocurrency theft have been linked to criminal groups , such as the Lazarus Group associated with North Korea, which has raised concerns about the security of the sector and the need for greater measures by providers and users.

In a year of notable ups and downs in the world of cryptocurrencies, the losses suffered by prominent platforms stand out .

The $197 million Euler Finance flash loan attack resulted in a significant blow to the DeFi community, although surprisingly, the hacker known as “Jacob” returned some of the funds , something unusual in this environment.

Similar incidents, such as the sophisticated $4 million attack on Trust Wallet , underscore the urgency for more rigorous surveillance in this vulnerable space.

The list details a series of hacks, from the colossal $200 million Mixin Network theft to smaller attacks like Kucoin’s Twitter Scandal for $23k in USDT.

Each incident reveals a story of million-dollar losses and, in some rare cases, partial recovery of funds.

The attacks, from the suspected Multichain rug pull to price manipulations on BonqDAO, underscore the complexity and urgent need for better, robust security measures.

This outlook highlights the importance of improving security on cryptocurrency platforms to ensure the protection of digital assets and user trust in this ever-changing ecosystem.


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