The 1st quarter of 2023 witnessed a whole lot 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. As a result, the cryptocurrency community should remain vigilant and proactive to prevent future attacks.
Digital Investment Hacks Decline Is Just A Short-Term Relief
Reports by a recent report by TRM Labs, Outlook confirmed that the amount stolen through cryptocurrency hacks in Q1 2023 was lower than any other quarter in 2022.
TRM Labs’ report revealed that the average hack size dropped by nearly 65 percent compared to the same period over the past year.
These figures at the beginning seem promising, indicating a positive shift in the security landscape of the cryptocurrency industry.
Nonetheless, the cybersecurity specialists at TRM Labs caution that the present downtrend in hacks is likely short-term and emphasize that the industry must not let its guard down.
They stressed that several large-scale attacks could tip the scales once more, leading to a rebirth of hacking incidents.
The decreasing tendency should not be misinterpreted as a permanent improvement in the overall security of cryptocurrencies.
Although while the exact reason for the decline in Q1 2023 remains unclear, TRM Labs implies that certain factors may have played a role.
TRM Labs thinks that the United States Treasury’s sanctioning of digital currency mixer Tornado Cash and the arrest and charges against Mango Market’s exploiter Avraham Eisenberg may have deterred potential hackers.
Just like TRM Labs, industry specialists, including blockchain tech security company Certik, likewise expressed skepticism about a sustained decline in exploits, flash loans, or exit scams.
In the meantime, a report revealed that approximately $3.8 Billion were lost to attackers throughout 2022, which marks the largest loss in cryptocurrency hacking history.
It’s worth noting that, the bulk of the losses took 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 whole lot of event took place in April when a prominent cryptocurrency exchange, Bitrue, dropped victim to a substantial hack.
The attackers exploited the exchange’s hot wallet system, gaining unauthorized access to one of the four hot wallets that held 5 percent of the exchange’s total assets.
In doing so, approximately $23 Million worth of Ethereum (ETH), Gala, and other digital currencies were stolen.
Another noteworthy attack took 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 blockchains teck, with Ethereum (ETH) being the primary target.
In May, a decentralized finance (DeFi) protocol, Deus Finance, experienced a security breach resulting in over $6 Million loss.
The attack at the beginning targeted the crypto stablecoin DEI on the BNB Smart Chain (BSC) before extending to the Arbitrum network. Deployments involving ARB/ Ethereum (ETH) on Arbitrum suffered losses exceeding $5 million.