Blockchain Security Firm Finds Crypto Losses Due to Hacks Down 51% in 2023
CertiK, a blockchain security firm, has released its annual report revealing positive news for the crypto industry. According to the “Hack3d” report, crypto losses due to hacks decreased by 51% in 2023 compared to the previous year.
Over $1.8 Billion Lost in 751 Security Breaches
Data from CertiK shows that in 2023, over $1.8 billion in crypto assets were lost in a total of 751 security breaches. This amount is a significant 51% lower than the losses incurred in 2022.
Web3 Security Improvements in 2023
Despite ongoing security incidents, 2023 saw a notable decline in losses due to hacking. CertiK’s annual report indicates that losses decreased by 51% in 2023 compared to the previous year, demonstrating improvements in Web3 security.
The report highlights that $1,840,879,064 was lost in a total of 751 hacks, scams, and exploits in 2023.
CertiK explains that in 2022, the industry suffered a total loss of $3.7 billion, with an average of $2.45 million per incident.
Major Losses Occur in Q3
CertiK’s report reveals that the third quarter of 2023 witnessed the highest losses, with a total of $686,558,472 lost across 183 security incidents. November recorded the highest losses, with $363,367,327 lost in 45 hacks, scams, and exploits.
Source: CertiK
Private Key Compromises Lead to Highest Losses
The report states that private key compromises were the most costly attack vector, accounting for nearly 50% of the financial losses. A total of $880,892,924 was lost in only 47 incidents.
The BNB Chain suffered the highest number of compromises, with 387 exploits, while Ethereum had 224 incidents but a lower loss total of $686 million.
Source: CertiK
A Rocky Start to 2024
CertiK’s report also highlights the issue of cross-chain interoperability in the crypto sector. Losses due to exploits reached nearly $800 million and affected multiple blockchains.
Additionally, the report mentions that phishing activities gained momentum in 2023, resulting in almost $300 million in losses for 320,000 users. Phishing scams became increasingly sophisticated throughout the year, allowing scammers to bypass security measures and drain funds from unsuspecting users.
Unfortunately, 2024 did not start well for the industry. The cross-chain project Orbit Chain experienced a significant exploit amounting to $81 million just hours before the new year. Furthermore, Radiant Capital became the second major victim of a scam within days, losing 1,900 ETH worth around $4.5 million.
Hot Take: Crypto Industry Sees Significant Decrease in Hacking Losses in 2023
CertiK’s Hack3d report showcases a positive trend for the crypto industry, with a 51% decrease in losses due to hacking in 2023 compared to the previous year. This indicates that security measures and protocols are improving, resulting in better protection for crypto assets. However, it is crucial for the industry to continue to address security concerns and develop robust solutions, especially in areas such as private key compromises and cross-chain interoperability. Overall, these findings suggest that the crypto industry is making progress in enhancing its security infrastructure.
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