The Amount of Losses Due to Crypto Hacks and Scams Reduced by Half in 2023

The amount of cryptos stolen in hacks and scams has significantly decreased in 2023 compared to 2022. According to a study published on December 27 by the startup De.Fi. However, despite this apparent decline, the magnitude of funds stolen, estimated at about 2 billion dollars, highlights the persistence of security vulnerabilities in the crypto ecosystem.

Improved Protocols but Still Numerous Breaches

According to data from De.Fi, losses attributable to hacks, scams, and crypto exploits amounted to nearly 2 billion dollars in 2023, a division by two from the 4 billion in 2022. This decrease is notably linked to better security protocols and increased vigilance following the scandals of 2022. The recovery rate of stolen funds has also significantly increased, from 2% to 10%.

Nonetheless, the total number of incidents observed remains significant. The Ethereum blockchain, which dominates the sector, alone accounts for 1.35 billion dollars in losses in no less than 170 reported cases. Access control hacks and flash loans are the preferred techniques of Web3 wrongdoers.

A More Favorable Crypto Environment Than in 2022

These figures should be put into perspective considering the widespread collapse of crypto prices in 2022, which mechanically led to a decrease in trading volumes and thus possibilities for dishonest gains. Importantly, the 2 billion in losses for 2023 do not take into account the 40 billion swallowed up in the bankruptcy of platforms like FTX last year.

The improvement in security can also be explained by the users’ heightened awareness and the regulatory strengthening observed in 2023. Nonetheless, the amount stolen this year remains staggering and testifies to persistent weaknesses in securing decentralized exchanges.

Although greatly reduced compared to 2022, the losses caused by hacks and scams in the crypto universe remain concerning. Despite the advancements in security, the decentralization inherent to this ecosystem still seems conducive to exploitable vulnerabilities by malicious actors. The continuation of this security effort is more crucial than ever.