In January 2023, the crypto industry suffered losses amounting to $73.9 million due to 19 cyber attacks, marking a 44% decrease year-over-year, although the number of attacks increased ninefold compared to December.
Major Attacks and Losses
The most significant losses occurred from two major attacks. The first hit Singapore-based CeFi exchange Phemex, resulting in a theft of $69.1 million, while the second attack targeted DeFi platform Moby Trade, which lost $2.5 million. Other incidents were less severe and included projects like Orange Finance. There were no fraud-related cases in January.
Attack Distribution Across Blockchains
In January, Binance Chain was the most targeted, losing 50% of total losses. Ethereum was also vulnerable, accounting for 25% of all attacks. Arbitrum and Base suffered two attacks each, and Optimism had one. Centralized finance platforms bore the brunt, losing over 93% of the total value lost in January.
Enhancing Security in CeFi Platforms
CeFi platforms are working to enhance security through multi-layer protective protocols and improved key management. Regular employee security training and bug bounty programs are recommended to mitigate risks and prevent significant financial losses.
The damage from attacks on cryptocurrency platforms remains substantial, especially for CeFi. However, implementing robust security measures can reduce threats and prevent large-scale losses.
