$2.61 Billion Lost in Crypto Hacks and Scams In 2023: PeckShield
Blockchain security firm PeckShield has released its 2023 analysis of major crypto hacks, scams, and stolen funds flowing from criminal exploits.
Per the report’s findings:
- Over $2.61 billion was lost from 600+ incidents.
- A decrease of 28% versus 2022 thefts
- However, DeFi protocols remained disproportionate targets.
- 67% of stolen value is sourced from DeFi platforms.
- 40% of hacks involved flash loan attacks.
- At least $674 million was recovered.
The $2.61 billion cumulative figure covers both outright crypto asset theft from hacks as well as losses to scams and fraud schemes.
Notably, the amount recovered over a quarter billion dollars marks a significant expansion. This suggests that proactive collaboration between regulators and industry players is paying off well.
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DeFi platforms fall prey to 67% of the crypto hacks
DeFi platforms continued to shoulder the majority of losses, with bad actors stealing over $1.5 billion from the sector alone. This accounts for 67% of all ill-gotten gains. Additionally, complex flash loan attacks persisted as a preferred vector, facilitating 40% of hacks and allowing instant asset borrowing exploitation.
But on the flip side, negotiated returns from hackers jumped fivefold to $674 million compared to 2022’s $133 million. Notably, factors like legal pressure, improved monitoring, and threat intelligence sharing helped boost recoveries.
Commentators noted that enhancements like integrated bounty programs and an emphasis on identifying culprits, not just investigating code, produced security improvements.
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Mixin lost the highest amount in 2023, which stands at $200 million. Euler Labs stands as the second largest, with $197 million stolen. In addition, Poloniex trails as the third, with $125 million in funds looted.
Looking ahead, collaborative cross-industry disruption of cybercriminal fund flows and infrastructure will prove vital in driving hack economics below profitability thresholds. Even though damages dropped year-over-year, $2.6 billion still afforded hackers substantial illicit gains.
