The 1st quarter of 2023 witnessed a wholeย lotย of decline in cryptocurrency hacks compared to the previous year.
Nonetheless, specialists warn that this decrease should be viewed as a brief reprieve rather than a longstanding tendency. Asย aย result, the cryptocurrency community should remain vigilant and proactive to prevent future attacks.
Digital Investment Hacks Decline Is Just A Short-Term Relief
Reportsย by a recent report by TRM Labs, Outlook confirmed thatย the amount stolen through cryptocurrency hacks in Q1 2023 was lower than any other quarter in 2022.
TRM Labsโ report revealed that the average hack size dropped by nearly 65 percent compared to the same period overย theย pastย year.ย
These figures atย theย beginning seem promising, indicating a positive shift in the security landscape of the cryptocurrency industry.
Nonetheless, the cybersecurity specialists at TRM Labs caution that theย present downtrend in hacks is likely short-term and emphasize that the industry must not let its guard down.
They stressed that severalย large-scale attacks could tip the scales onceย more, leading to a rebirth of hacking incidents.ย
The decreasing tendency should not be misinterpreted as a permanent improvement in the overall security of cryptocurrencies.
Althoughย while the exact reason for the decline in Q1 2023 remains unclear, TRM Labs impliesย that certain factors may have played a role.
TRM Labs thinksย that the Unitedย States Treasuryโs sanctioning of digitalย currency mixer Tornado Cash and the arrest and charges against Mango Marketโs exploiter Avraham Eisenberg may have deterred potential hackers.
Just like TRM Labs, industry specialists, including blockchainย tech security company Certik, likewise expressed skepticism about a sustained decline in exploits, flash loans, or exit scams.
Inย theย meantime, a report revealed that approximately $3.8 Billion were lost to attackers throughout 2022, which marks the largest loss in cryptocurrency hacking history.
ย Itโsย worthย notingย that, the bulkย of the losses tookย place from North Korea-linked attackers and decentralized protocols.
Cryptocurrency Hacks In 2023
The digital investment industry has witnessed a series of hacking incidents that have underscored the ongoing threat posed by cybercriminals.
1 wholeย lotย of event tookย place in April when a prominent cryptocurrency exchange, Bitrue, dropped victim to a substantial hack.
The attackers exploited the exchangeโs hot wallet system, gaining unauthorized access to one of the four hot wallets that held 5 percent of the exchangeโs total assets.ย
Inย doingย so, approximately $23 Million worth of Ethereumย (ETH), Gala, and other digitalย currencies were stolen.
Another noteworthy attack tookย place in April, involving a perplexing hacking spree that targeted cryptocurrency whales and early investors.
These individuals collectively lost $10 Million from their accounts across 11 different blockchainsย teck, with Ethereumย (ETH) being the primary target.
In May, a decentralizedย financeย (DeFi) protocol, Deus Finance, experienced a security breach resulting in over $6 Million loss.
The attack atย theย beginning targeted the cryptoย stablecoin DEI on the BNB Smart Chain (BSC) before extending to the Arbitrum network. Deployments involving ARB/ Ethereumย (ETH) on Arbitrum suffered losses exceeding $5 million.
