Crypto Hackers Stole $1.7 Billion From Crypto Projects In 2023

Key Points:

• A 50% decrease in crypto project losses by crypto hackers, down to $1.7 billion in 2023.
• The top 10 hacks this year make up 70% of stolen funds.
• Nearly 60% of total thefts in 2023 will result from infrastructure attacks, mainly private key thefts.

Bloomberg has reported a notable decline in losses suffered by crypto projects due to crypto hackers, plummeting by nearly 50% to approximately $1.7 billion this year. This decline is attributed to enhanced security measures and intensified law enforcement efforts.

Project Losses Slash by Half in 2023

TRM Labs, specializing in financial crime detection, anticipates that even with potential hacks in December, the overall number of incidents in 2023 is expected to be “significantly lower than in 2022.” Last year, crypto projects experienced staggering losses of $4 billion, including a prominent $600 million attack on the Ronin Bridge linked to the Axie Infinity game.

TRM’s analysis reveals that the top 10 hacks this year constituted almost 70% of the total stolen funds. Examples include attacks on Euler Finance, a decentralized lending app, a multi-chain bridge, and the Poloniex cryptocurrency exchange, with each incident resulting in a $100 million haul.

Crypto Hackers Often Target Infrastructure

Notably, infrastructure attacks, particularly private key theft facilitating unauthorized access to crypto project servers or software, contributed to nearly 60% of total thefts in 2023, as per TRM’s findings. Crypto hackers have long impeded the mainstream adoption of digital currency, with high-profile thefts on various exchanges and platforms dissuading potential investors.

A recent setback for the industry is the HTX exchange, linked to Justin Sun, which experienced a substantial $258 million net outflow following a major hack, even after resuming operations. While challenges persist, the significant reduction in losses underscores the industry’s commitment to fortifying security measures and combating cyber threats.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.