In 2023, the damage caused by cryptocurrency hacks significantly decreased compared to previous years. According to a report published by blockchain intelligence firm TRM Labs on December 13th, the main reasons for this decline include improvements in the industry’s security measures and increased collaboration and coordination within the sector.
Compared to 2022, where about $4 billion was stolen from internet protocols, the losses in 2023 were recorded at approximately $1.7 billion. This figure is almost half of what was lost in the previous year.
”2022: The Most Terrifying Year”
Chainalytic had recorded 2022 as “the most terrifying year to date in terms of hacking activities.” TRM Labs attributes the decrease in losses to advanced security measures that protect digital wallets and exchange platforms.
The report also highlights that in 2023, the industry increased information sharing and collaboration to form a stronger defense against cybercriminals. Cryptocurrency exchanges, blockchain networks, and wallet providers shared more information about vulnerabilities and threats, thereby creating a collective defense mechanism.
Over 60% of the losses in 2023 occurred particularly due to infrastructure attacks, with a large portion of the stolen funds resulting from large-scale attacks targeting specific objectives.