Significant Losses in Cryptocurrency Thefts in December 2023
In December 2023, there were significant losses in cryptocurrency thefts, with the latest attack on Orbit Chain’s cross-chain bridge contributing to nearly $100 million in total losses for the month. PeckShield, a blockchain security firm, reported that the $81.5 million exploit of the Orbit Bridge was one of the top five crypto hacks of the year.
This breach also ranked as the ninth-highest hack targeting a cross-chain bridge over the past three years. The hack affected Orbit Bridge, a bridging service of the Orbit Chain protocol launched in South Korea in 2018.
Following the security breach, Orbit Chain’s team took immediate action to freeze the stolen assets and collaborated with global cryptocurrency exchanges and law enforcement agencies to address the situation.
Over $1.5 Billion Lost to Hackers in 2023
Throughout 2023, estimates from blockchain security firms indicate that between $1.51 billion and $2 billion were lost due to hacks, scams, and exploits. Notably, approximately 17% of these losses were attributed to the activities of the North Korean hacker group Lazarus.
September and November were particularly challenging months, with losses exceeding $700 million during this period. Major incidents included Mixin Network losing $200 million in September and significant exploits on Poloniex and HTX/Heco Bridge in November resulting in losses of $131.4 million and $113.3 million respectively.
Although there were notable hacks throughout the year, such as Euler Finance losing $197 million in March and Multichain suffering a $125 million hack in July, Beosin highlighted a decline in overall hacking incidents compared to 2022. Total losses in 2023 decreased from approximately $4.38 billion in the previous year.
Reduction in Hacks Signals Improved Security Measures
Hacks experienced the most significant reduction, declining from $3.6 billion in 2022 to $1.39 billion in 2023, marking a decrease of about 61.2%. This data suggests an improvement in the security and vigilance within the crypto sector, despite ongoing challenges.
Hot Take: Progress and Persistent Challenges in Crypto Security
In December 2023, cryptocurrency thefts resulted in substantial losses, with the attack on Orbit Chain’s cross-chain bridge contributing to the month’s total losses nearing $100 million. However, there has been progress in combating hacks, scams, and exploits throughout the year, as evidenced by a decline in overall losses compared to 2022. While this indicates improved security measures and increased vigilance within the crypto sector, challenges persist. The crypto community must continue to prioritize security to protect against future breaches and ensure the trust and confidence of users.
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