According to a study by TRM Labs, crypto hackers managed to steal around $1.7 billion in 2023. This represents a drop of more than 50% on the previous year. But what is the reason for this drop? Find out in this article.
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Crypto hackers lose ground in 2023
Since its emergence, the crypto sector has been the target of various computer attacks. The year 2023 was no exception. According to TRM Labs, a data company, about 160 crypto hacks were recorded in 2023. In particular, these hacks led to the theft of nearly $1.7 billion, informs TRM Labs.
Although TRM Labs only cover the period from January to November 2023, it is clear that the scale of the hacks has decreased compared to the previous year. Indeed, crypto hacks had resulted in the loss of nearly $4 billion according to TRM Labs and Slowmist.
As in 2022, the hacks were not on the same scale. Approximately 70% of $1.7 billion was stolen in ten hacks. Some of the most emblematic hacks involved funds in excess of $100 million. Examples include the hacks against Euler Finance, Mixin Network or Poloniex.
The Cause of the Drop in Crypto Hacks
TRM Labs believes that the drop in hacking can be explained by three factors:
- The continuous improvement of security measures in the crypto sector. Indeed, several crypto companies strengthened security protocols in 2023. One of the most recent examples is Metamask which introduced an alert functionality.
- The mobilization and collaboration of law enforcement agencies in different countries. 2023 was a year in which hackers were hunted down, and sometimes even arrested. In addition, crypto enterprise collaboration, as in the case of Kraken with the forces of law and order.
- Better coordination between the various crypto. The sharing of information on vulnerabilities, threats, and hacks has facilitated the establishment of a unified front against cybercriminals.
As the crypto market matures, its vulnerability to malicious attacks decreases more and more. This is a truly encouraging trend, which, we hope, will continue into 2024. However, it’s too early to claim victory. And let’s not forget that no technology can protect a careless investor from a hack. So we must remain vigilant and cautious. On this occasion, our practical advice may be helpful.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.
