Cryptocurrency hacks decreased dramatically between 2023 and the year before, which may suggest that increased security measures and law enforcement attention are having a positive effect. According to TRM research Labs, cybercriminals managed to steal around $1.85 billion from blockchain security companies in 2023, compared to the nearly $4 billion that was lost in the previous year. Despite the number of attacks remaining at a steady rate of around 160, the value of assets stolen significantly dropped, pointing to significant improvements in the industry’s security systems.
Infrastructure attacks, where hackers gain access to a system’s core, were the most destructive type of hack in 2023. The average theft per incident was $30 million, which accounted for almost 60% of the total money stolen. Some of the biggest attacks of infrastructure in 2023 included Euler Finance in March, Multichain in July, Mixin Network in September, and Poloniex in November, with each of these resulting in more than $100 million in losses.
TRM’s report attributes the decline in hacking activities to three main factors: improved security measures for the industry, increased law enforcement action, and better coordination among industry players. Cryptocurrency exchanges and wallet providers have invested in real-time transaction monitoring and anomaly detection tools, making it more difficult for hackers to get away with their actions. Cybercrime and digital currencies are becoming a major concern for law enforcement, and with their help, stolen assets can be recovered. Additionally, exchanges, wallet providers, and blockchain networks are sharing information about vulnerabilities and threats, which makes it harder for hackers to exploit weaknesses in the system.
Despite the encouraging decrease in hacking volumes, the cryptocurrency security landscape is unpredictable and the positive trend could be reversed quickly if a new, sophisticated threat appears. Redbord emphasized that the industry and law enforcement must remain vigilant and adaptable, always on the lookout for new threats and ready to adjust their security measures accordingly. The ability of the crypto industry to combat cybercrime depends on its ability to maintain a multi-pronged security approach by continuously improving its defenses, collaborating with law enforcement, and sharing information. This will create a more secure environment for users and give greater confidence in digital assets.
