Overview of Cryptocurrency Hacks in 2023
Blockchain security firm PeckShield has released a report on the state of cryptocurrency hacks in the past year, revealing that there were over 600 reported cases resulting in losses of $2.61 billion. However, there was a significant drop of 27.78% in crypto scams compared to the previous year.
Hacks and Scams Breakdown
According to PeckShield, out of the total losses, $1.51 billion was lost to hacks, while $1.1 billion was lost to scams. Bad actors utilized various methods such as phishing, flash loan attacks, and bridge hacks to carry out their malicious activities.
$674 Million Recovered After Hacks
A positive outcome highlighted in the report is the increased recovery rate following hacks. In 2023, digital asset firms managed to recover $674.9 million from bad actors involved in scams, a significant improvement compared to the $133 million recovered in 2022.
Factors Contributing to Recovery
The improved recovery rate can be attributed to factors such as stronger community engagement, collaboration among Web3 executives and channels, and the implementation of negotiation tactics. Additionally, heightened regulations have led law enforcement agencies to track down scammers and recover stolen assets.
November Tops Exploit Charts
In November, Poloniex experienced a major hack where over $100 million was stolen. The exchange’s major shareholder, Justin Sun, announced a $10 million bounty for the hackers’ return of all assets before November 25th or face prosecution by police in multiple countries. DeFi protocols remained more vulnerable than centralized finance partners, with DeFi incidents accounting for 67% of reported figures.
Hot Take: Decrease in Crypto Scams
In 2023, the crypto industry witnessed a significant decrease of 27.78% in crypto scams compared to the previous year. This decline can be attributed to increased vigilance among digital asset users, collaboration with law enforcement agencies, and the deployment of recovery bounties by blockchain firms. Although the threat of hacks and scams persists, these positive developments indicate progress in addressing security issues within the crypto space.
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