The hacks and scams in the crypto world decrease in 2023

In the dynamic crypto realm, the year 2023 witnessed a harsh reality: users had to face significant financial losses, totaling $1.8 billion, due to a series of hacking, exploits, scams, and frauds.

Immunefi, one of the leading bug bounty platforms, has revealed these alarming statistics in its recent report, highlighting the persistent challenges posed by cyber adversaries in the cryptographic space.

Hacks and scams in the crypto world decrease in 2023

Despite a significant reduction of 54% compared to the $3.9 billion losses recorded in 2022, the number of individual incidents has skyrocketed by 90%, going from 168 in the previous year to 319 in 2023. 

The third quarter proved to be a crucible of adversity, contributing to a third of the overall losses suffered throughout the year. 

The monthly breakdown revealed that November was the peak month for losses, amounting to 343 million dollars, followed by September with 340 million dollars and July with 320 million dollars in losses.

Decentralized finance platforms (DeFi) have borne the brunt of malicious activities, serving as the epicenter of attacks and resulting in losses totaling $1.6 billion across 247 incidents.

At the same time, fraudulent schemes have caused losses of $103 million in 110 distinct incidents, demonstrating the variety of threats that cryptocurrency enthusiasts must face.

The Immunefi report highlights a partial positive side: 13.5% of the funds stolen, approximately 231.7 million dollars, have been successfully recovered in 19 cases. 

This underlines the evolution of security measures and collaborative efforts to mitigate the impact of cyber threats.

The Immunefi Report

The report further delves into the specific dynamics of these incidents’ blockchain, identifying BNB Chain and Ethereum as the predominant targets, collectively responsible for over half of the total losses.

BNB Chain has suffered 131 incidents, closely followed by Ethereum with 91, while Polygon and Avalanche have suffered ten and six incidents respectively.

Within this unsettling landscape, the Lazarus Group from North Korea has emerged as the most prolific attacker, with a whopping $308.6 million escape, equivalent to 17.4% of the cumulative losses in 2023. 

The group’s involvement in high-profile attacks on Atomic Wallet, CoinEx, Alphapo, Stake, and CoinsPaid highlights the sophisticated and persistent nature of these threats.

Among the noteworthy incidents, the attacks on Mixin Network ($200 million), Euler Finance ($197 million), Multichain ($126 million), Poloniex ($126 million), and BonqDAO ($120 million) stand out, highlighting the variety of targets within the cryptocurrency ecosystem.

Conclusions

In conclusion, the tumultuous crypto landscape in 2023, characterized by significant losses of 1.8 billion dollars, requires a profound reevaluation of the security paradigms in the industry. 

The complete Immunefi report serves as a reminder that, despite a relative reduction in overall losses, the frequency and sophistication of cyber threats continue to increase. 

The decentralized finance sector, in particular, is at the forefront of opponents’ attention, highlighting the critical need for solid security frameworks.

While the recovery of 13.5% of stolen funds shows incremental successes, the dominance of the Lazarus Group from North Korea highlights the persistent challenges posed by state-sponsored actors. 

Targeted attacks on important projects further highlight the need for continuous innovation in cybersecurity measures. 

As the cryptocurrency community navigates this precarious terrain, collaborative efforts, technological advancements, and increased vigilance emerge as imperative elements to defend against emerging threats, ensuring the resilience and longevity of the digital asset ecosystem.