Crypto Hacking in 2023 Drops to $1.7B: Report

According to reports, it was discovered that the level of crypto hacking in 2023 dropped significantly compared to the levels seen in 2022, indicating an effect of increased security in the industry.

Crypto Hacking Figures Slumps

The number of attacks seen this year is nothing compared to the crypto hacking figures from last year as it is currently at around $1.7 billion. Even if there were a couple of hacks in December before the year ends, it is not likely to climb as high as the levels seen in 2022. 

By October 2022, blockchain intelligence company Chainalysis reported a total of $3 billion in loss to crypto hacks. This included the popular Axie Infinity Ronin bridge exploit that led to the loss of $625 million in cryptocurrencies. There was also the Mango Markets hack in which the hacker conducted an oracle manipulation that eventually led to a loss of $100 million. 

“While we are always one Ronin-size hack away from a record setting year, the global focus on cybercrime is likely to, at least in part, mitigate some of the activity which is critical in order for the overwhelmingly lawful ecosystem to grow,” Ari Redbord, global head of policy and government affairs at TRM pointed out.

October was regarded as the month with the highest number of crypto attacks in the whole year. Based on some research, more than 11 distinct crypto hacks were reported in October, resulting in losses valued at approximately $718 million through DeFi protocols. Before the end of 2022, the crypto hacking figures had already climbed to almost $4 billion.

Governments Intensifies Crypto Regulations

It is worth noting that authorities intensified their scrutiny of the crypto sector this year after a dampening 2022 that saw the fall of several crypto projects in forms of withdrawal suspension, insolvencies and bankruptcies. The governments of different nations have been putting effort into rolling out a robust crypto regulatory framework that safeguards crypto investors in their respective regions.

Kenya recently advanced its crypto regulation with a proposed bill for taxation and security categorization of digital assets. Spain also aligned its crypto rules with EU regulations by mandating crypto asset declaration for holdings over €50,000 on foreign platforms, effective in January 2024.