Despite a decrease in total funds stolen, the number of cryptocurrency hacks increased in 2023, raising concerns about the growing sophistication of cybercriminals.
A report by blockchain analysis firm Chainalysis revealed that hackers stole a total of $1.7 billion worth of cryptocurrency from platforms last year, a significant decline from the $3.7 billion stolen in 2022 and the $3.3 billion stolen in 2021.
This drop is attributed to the declining number of attacks targeting decentralized financial (DeFi) protocols, which fueled the surge in funds stolen in previous years. In 2023, DeFi hacks accounted for only $1.1 billion in losses, compared to $3.1 billion in 2022.
However, the number of attacks against centralized crypto platforms (CeFi) increased, with notable heists like Euler Finance ($197 million), Mixin Network ($200 million), and Poloniex Exchange ($130 million).
North Korea-linked hackers, known for their use of cryptocurrency theft to fund their weapons programs, also reduced their haul in 2023, stealing just over $1 billion compared to $1.7 billion in 2022. Despite this, the number of attacks they conducted increased from 15 to 20.
While the overall amount stolen from crypto platforms decreased in 2023, the report highlighted the increasing sophistication and diversity of cyberattacks. On the positive side, cryptocurrency platforms are also becoming more adept at securing their systems and responding to attacks.
As crypto platforms prioritize timely response to exploits, law enforcement agencies will be better equipped to track and recover stolen funds. Over time, as these processes improve, the likelihood of successful crypto hacks is expected to decline.
