Losses of crypto projects caused by hacks decreased by half.

Losses of crypto projects caused by hacks decreased by half.

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by Max Nevskyi

3 years ago


Losses of cryptocurrency projects from hacker hacks in 2023 decreased by more than half compared to the previous year. Nevertheless, the number of attacks remains stable despite this positive development. This trend is explained by the improvement of security systems, the active participation of law enforcement agencies and improved cooperation in the digital asset industry, according to an analysis conducted by TRM Labs specialists.

While reducing losses is a positive development, there is a risk that just a few major hacks in December could significantly worsen the situation.

The vast majority of losses (almost 60%) are related to attacks on infrastructure, while the greatest damage is caused by theft of private keys or compromise of keywords. Experts estimate the average cost of such attacks at $30 million.

Similar to the previous year, about 70% of the stolen funds were accounted for by ten major hacks, and in several of them the damage amounted to more than $ 100 million. Some of these attacks include Euler Finance, Multichain, Mixin Network and Poloniex.

The decrease in hacker attacks in 2023 is due to three key factors: improved security measures, a more active role for law enforcement agencies, and improved coordination between participants in the cryptocurrency asset industry. Nevertheless, experts emphasize that the situation with cyber attacks remains dynamic and uncertain.

Theft of private keys continues to be the main vulnerability of crypto projects, and this leads to frequent attacks, although total losses have decreased. Experts also note a change in the tactics of hackers who commit smaller but more frequent hacks.

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