Blockchain Analytics Firm Reports Decrease in Crypto Theft
According to blockchain analytics and security firm Chainalysis, cryptocurrency theft decreased in 2023. In a recent blog post, the firm revealed that the total loss in the crypto market was $1.7 billion, a significant reduction from the $3.7 billion stolen in 2022.
Individual Hacking Incidents Increase, but DeFi Attacks Dip
Despite the decrease in overall theft, Chainalysis noted an increase in individual hacking incidents from 219 in 2022 to 231 in 2023. However, there was a 17.2% drop in decentralized finance (DeFi) attack incidents specifically.
North Korea-Backed Hackers’ Role in Crypto Industry
The report also highlighted the involvement of North Korea-backed hackers such as the Lazarus Group and Kimsuky in the crypto industry. These groups stole $1 billion in 2023, compared to $1.7 billion in 2022.
Significant Losses and Improved Security Measures
The cyberattack groups targeted various platforms and stole millions of dollars. DeFi platforms lost $428.8 million, centralized crypto service operators lost $150 million, crypto exchanges lost $330.9 million, and crypto wallet service providers lost $127 million to North Korea-backed hackers.
However, there was a significant drop in DeFi platform hacks by more than 63% in 2023, with only $1.1 billion stolen compared to $3.1 billion in the same period in 2022. This decrease can be attributed to improved security measures and a lower amount of funds available to steal.
Attack Vectors Targeting On-chain and Off-chain Vulnerabilities
Hackers focused on the DeFi space due to the influx of funds during the crypto bull run. Chainalysis revealed that attack vectors can be categorized into on-chain and off-chain vulnerabilities. On-chain vulnerabilities are related to the online components of a DeFi protocol, while off-chain vulnerabilities involve weaknesses outside the protocol.
Compromised private keys, price manipulation attacks, and smart contract exploitations were identified as the leading causes of DeFi hacks in 2023.
Hot Take: North Korea Hackers’ Illicit Gains Dwindled in 2023 Despite More Attacks
Chainalysis has reported a decrease in cryptocurrency theft in 2023. While individual hacking incidents increased, there was a drop in DeFi attack incidents. North Korea-backed hackers played a significant role in stealing funds from various platforms. However, DeFi platform hacks decreased due to improved security measures and a lower amount of funds available to steal. Attack vectors targeted both on-chain and off-chain vulnerabilities, with compromised private keys, price manipulation attacks, and smart contract exploitations being the leading causes of DeFi hacks. Overall, despite more attacks taking place, the illicit gains of North Korea hackers decreased in 2023.
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