Crypto Hacks Decline by Over 50% in 2023, According to TRM Labs
Despite a near-constant number of hacks, the total amount of crypto stolen has been slashed by over half in 2023, TRM Labs reports. Hackers managed to pilfer $1.7 billion through November 2023, a significant decrease compared to the nearly $4 billion lost in 2022. The decrease can be attributed to improved industry security measures, stepped up law enforcement action, and closer industry coordination.
Infrastructure Attacks Remain Prevalent
Despite the decline in crypto theft, infrastructure attacks still account for nearly 60% of total losses. The most destructive attacks involve compromising private keys or seed phrases of crypto systems, enabling bad actors to steal funds or manipulate trades.
“Despite the encouraging news, the hacks landscape remains rapidly evolving and inherently uncertain: the emergence of a new sophisticated threat could quickly reverse the decline in hack volumes.”
TRM Labs
Recent Attacks in November 2023
In late November 2023, several crypto projects fell victim to attacks. Hackers earned $290 million in one month from attacks on Poloniex, HTX, Heco bridge, KyberSwap, and Kronos Research. The affected platforms included three Justin Sun-related entities: HTX, Heco Bridge, and Poloniex.
During the same month, there were various attacks ranging from protocol hacks to phishing campaigns. One incident involved the infiltration of the X account of the Ethereum layer-2 network Loopring by phishing scammers. The team managed to stop the malicious links promoting a fake LRC token airdrop after nearly a full day.
Hot Take: Decrease in Crypto Hacks Shows Positive Progress
TRM Labs’ report indicating a decline of over 50% in crypto theft in 2023 is an encouraging development for the industry. Improved security measures, law enforcement action, and industry coordination have played key roles in reducing these incidents. However, it is important to remain vigilant as the landscape of hacks continues to evolve rapidly. The emergence of new sophisticated threats could easily reverse this decline. Continued efforts are needed to ensure the safety and security of crypto assets.
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