In 2023, security in the cryptocurrency sector improved significantly. Digital asset users lost half as much funds compared to the previous year, indicating an increase in the reliability of the cryptocurrency industry. This reduction in losses occurred against the backdrop of significant market capitalization growth and a more than 150% increase in Bitcoin prices.

According to De.Fi, since the beginning of 2023, cryptocurrency users have lost about $2 billion due to fraud, rug pulls, and protocol hacks. This amount is significantly less than the losses last year, but according to analysts, the industry is still at risk.

Researchers note that the improvement in security is associated with the implementation of more advanced security protocols, increased community awareness, and a general decrease in market activity. This was a consequence of the collapse of Terraform Labs and its digital currencies LUNA and UST, as well as the bankruptcy of the cryptocurrency lender Celsius and the trading platform FTX.

Despite the market capitalization increase by the end of the year, many altcoins depreciated by 80-90% relative to their peak values in 2021. However, they have recovered recently, and the decrease in hype around the global market has led to a reduction in criminal and fraudulent activities. The rate of fund recovery improved to about 10% compared to 2% in 2022.

Ethereum turned out to be the most vulnerable blockchain, with total user losses of $1.35 billion as a result of 170 incidents. The most significant damage was caused by an attack on the Multichain cross-chain platform, which cost $230 million. Losses from "control attacks," exploiting permissions in smart contracts, amounted to $852 million in 29 cases. Losses from exploits using the flash loan mechanism reached $275 million in 36 cases, while rug pulls occurred 263 times, leading to losses of $136 million.