Crypto investors have only lost $1.7 billion in 2023

According to Chainalysis’ annual cybercrime report, crypto funds stolen by hackers in 2023 amounted to $1.7 billion, down 54% from the 2022 record of $3.7 billion. This decrease is primarily attributed to the decline in hacking attacks targeting DeFi platforms, which dropped from over $3 billion to $1.1 billion.

Crypto Hacks Less Lucrative but More Frequent

According to Chainalysis, the decrease in the amounts stolen is mainly due to the reduced frequency of attacks on decentralized protocols. Crypto hackers had stolen more than $3.1 billion in 2022, compared to “only” $1.1 billion in 2023, a drop of nearly 64%.

This relative calm rewards the substantial efforts by developers to close security loopholes and strengthen smart contracts after a massive hemorrhage in 2021 and 2022. However, the billion dollars siphoned off last year is a brutal reminder that DeFi platforms remain highly vulnerable to cybercriminal onslaught.

While the total amount of stolen crypto has decreased, the number of successful hacks continued to climb. Chainalysis counted 231 in 2023, up from 219 in 2022. In other words, even if each attack was less profitable, their frequency continues to increase, revealing the hackers’ persistence in finding any weaknesses to exploit.

North Korea, a Persistent Threat 

Among the most active and feared groups of hackers today are cybercriminal organizations linked to North Korea, such as Lazarus Group and Kimusky. According to Chainalysis, they are responsible for at least 20 successful crypto hacks in 2023, more than any other country.

Their war chest is estimated at just over a billion dollars for the year, indeed down from the $1.7 billion stolen in 2022, but showing that North Korea remains a major player in international cybercrime. The North Korean regime is suspected of illegally financing its nuclear program with pilfered crypto.

Despite the relative decrease in certain gains, the motivation and formidable capabilities of the crypto hackers serving the dictatorship remain intact, watching for any vulnerability in smart contracts to strike.

Although slowed, the hemorrhaging of crypto funds due to hacks continues. North Korea remains a major actor in cybercrime. And DeFi platforms, the heart of blockchain innovation, must imperatively strengthen their security to resist the constant onslaught of hackers.