Cryptocurrency Hacks 2023: 600+ Attacks, $2.61 Billion Net Losses
Cryptocurrency hacks increase in 2023, causing $2.61 billion in losses. Among them, DeFi is the top target. Despite a decrease compared to 2022, security concerns remain high.
In 2023, the number of hacks in the cryptocurrency industry increased. According to data from PeckShieldAlert, there have been more than 600 major hacks, resulting in a staggering $2.61 billion in losses.
These losses were uneven across the spectrum, with $1.51 billion attributed to hacks (excluding unauthorized withdrawals on Multichain) and $1.1 billion due to fraud.
Despite a decrease of 27.78% compared to the previous year, the total loss in 2023 is still a significant number, showing the severity of the problem.
Source: PeckShieldAlert
Cryptocurrency hacks increased in 2023 with over 600 attacks
DeFi protocols in particular were the main targets of these hacks, accounting for 67% of the total value stolen. The data implies that despite the promise of decentralization and increased security, DeFi protocols still have significant vulnerabilities that need to be addressed.
However, 2023, despite its high number of hacks, was not the worst year in terms of losses. That “achievement” still belongs to 2022, which marked the worst year on record for cryptocurrency hacks.
In 2022, hackers stole a whopping $3.6 billion, a figure significantly higher than the $1.79 billion stolen in 2021.
Chainalysis: North Korean hackers steal less in 2023 despite more breaches
According to the latest report published by blockchain analytics firm Chainalysis, hacking groups linked to the Democratic People's Republic of Korea (DPRK) have stolen fewer cryptocurrencies despite increased efforts and Diversify goals by 2023.
In 2022, the number of coins lost due to exploits related to North Korea reached $1.7 billion through 15 hacks. In 2023, Chainalysis estimates these hacking groups stole around $1 billion worth of cryptocurrency from 20 hacks. This shows that even though there are more exploits, hackers cannot make more money than last year.
Total value of assets stolen by hackers related to North Korea | Source: Chainalysis
Erin Plante, vice president of investigations at Chainalysis, predicts North Korea-related hacks will continue to become more sophisticated and diverse. With less illicit profits being made from DeFi protocols due to security improvements, Plante explained North Korean hackers are increasingly diversifying and targeting centralized services and wallets.
Types of Cryptocurrency Services Affected by North Korean Hacks | Source: Chainalysis
The executive further noted that North Korea-linked hackers are more likely to use phishing and social engineering in 2023. Plante describes these attack vectors as “hacking tactics.” old style” can be prevented by educating and raising awareness among employees. Plante said:
“Common security measures are an important foundation for a strong cyber security strategy, and organizations should ensure every employee is alert and up to speed on the technical side of cyber defense.”
Plante also shared they noticed a pattern regarding attacks linked to North Korea. Hackers tend to spend more time online, the operator said, highlighting the need for increased network security and monitoring.
According to Plante, DeFi protocols can be susceptible to on-chain errors, so on-chain activity monitoring systems should be used. On the other hand, platforms vulnerable to off-chain risks must reduce their dependence on centralized products and services.
Overall, the executive believes that North Korean hackers will continue to look for opportunities to steal significant amounts of money wherever they can.
“As the doors close on them, their ability to rapidly evolve will continue to make them sophisticated dangerous actors.”
How investors can protect cryptocurrencies
Investors should have safe habits to avoid lurking cryptocurrency hacks. Including, understanding project mechanics, diversifying investments and being wary of unverified projects. Choosing secure digital wallets like MetaMask and Coinbase is important, as is securing your passphrase and private keys.
Learning from previous hacks can aid decision making. While security has improved, centralized exchanges are not immune to attacks, so vigilant and strong personal security measures are necessary.
