Cryptocurrency Industry Suffers $2.61 Billion in Hacks and Scams in 2023, Report Reveals
Date: 2024-01-29 Author: Dima Zakharov Categories: IN WORLD
Hacking and Fraud Plague Cryptocurrency Industry in 2023
In a recent report by PeckShield, it has been revealed that the cryptocurrency industry endured substantial financial losses in 2023 due to a surge in cyberattacks and fraudulent schemes. The total damage amounted to a staggering $2.61 billion, painting a grim picture of the industry's vulnerability to digital threats.
The Breakdown of Losses
Out of the total losses, a significant portion, approximately $1.51 billion, resulted from hacking incidents. The remaining sum was attributed to various forms of fraudulent activities within the crypto sphere. Interestingly, compared to the previous year, 2022, there was a noticeable decrease of 27.78% in the cumulative losses, offering a glimmer of hope amidst adversity.
Timing and Targets
The most substantial losses were recorded in November, with a whopping $364.4 million in damages, closely followed by September, which saw losses amounting to $339.2 million. The report also highlighted that malicious actors primarily targeted DeFi protocols, accounting for approximately 67% of the total damages, while centralized exchanges (CEX) bore the remaining 33%.
Instant Loans and Vulnerabilities
Shockingly, 40% of the attacks were carried out using instant loans, emphasizing the need for enhanced security measures in the crypto industry. Among the over 600 incidents, the following projects suffered the most substantial losses:
- Mixin ($200 million)
- Euler Finance ($197 million)
- Poloniex ($125 million)
- HECO Bridge & HTX ($111 million)
- Orbit Chain ($81.5 million)
Comparative Analysis
It is worth noting that in 2023, Immunefi analysts estimated the industry's losses from hackers and fraudsters to be $1.8 billion, showcasing the persistent threats faced by the crypto community. Earlier, TRM Labs identified factors that could contribute to reducing hacking-related losses in the coming years.
