North Korea-Linked Hacks Increase, but Stolen Funds Decrease
A recent report from blockchain analysis firm Chainalysis has revealed that while North Korea-linked hacks reached a record high in 2023, the actual amount of funds stolen by them decreased by 50%. In 2022, a total of $3.7 billion was stolen, but this number dropped to $1.7 billion in 2023, despite an increase in the number of hacking incidents.
Hacks Increase, But Stolen Funds Drop
Hackers have repeatedly targeted cryptocurrencies, resulting in billions of dollars being stolen. However, in 2023, the total value of stolen funds decreased by over 50% compared to the previous year. Although the number of hacking incidents increased from 219 to 231, the stolen funds dropped to $1.7 billion from $3.7 billion in 2022. Chainalysis attributed this decrease to a drop in DeFi hacking incidents, which had been a major contributor to the stolen crypto in the past.
DeFi Hacking incidents Drop, But Overall Numbers Decrease
Chainalysis’ report highlighted that the decline in stolen funds was primarily driven by a significant drop in DeFi protocol hacks. These types of hacks contributed to the surge in stolen funds in 2022 but decreased significantly in 2023. Last year, hackers stole only $1.1 billion from DeFi protocols, representing a 63% drop compared to the previous year. The report also noted a noticeable decline in all funds stolen through DeFi protocols.
Sophisticated Attack Vectors
DeFi hacking became a major issue in the crypto ecosystem, especially in 2021 and 2022. Cybersecurity experts noted that most of the vulnerabilities in DeFi protocols were due to the focus on growth by the protocol operators, neglecting security implementations. Chainalysis’ report categorized the attack vectors into two groups: on-chain and off-chain vectors. On-chain vectors are vulnerabilities within the protocol, while off-chain vectors originate outside the blockchain.
Hacks Part of a Larger Trend
The increase in North Korea-linked hacks is part of a larger pattern. Previous reports have shown that hackers affiliated with North Korea have stolen millions of dollars’ worth of crypto assets. These funds are believed to be used to fund the country’s nuclear weapons program. The recent surge in hacks has led to sanctions against organizations involved in laundering money for North Korea, further highlighting the impact and importance of addressing the issue.
Hot Take: Efforts to Combat Cybercrime in Crypto Must Intensify
The decrease in stolen funds from crypto hacks is a positive development; however, it does not mean that the problem is resolved. As North Korea-linked hacks and other cyberattacks continue to evolve and become more sophisticated, it is crucial to intensify efforts to combat cybercrime in the crypto space. This includes implementing stricter security measures, conducting regular audits of protocols, and increasing awareness among users about the risks and best practices to protect their funds.
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