Crypto Hacks Surge In 2023: 600+ Attacks, $2.61 Billion Net loss

Key Points:

• The crypto industry experienced over 600 major hack incidents in 2023, leading to losses of approximately $2.61 billion.
• DeFi protocols were the main targets, accounting for 67% of the total stolen value, indicating significant vulnerabilities.

Crypto hacks surge in 2023 with $2.61B lost. DeFi was a prime target. Despite a decrease from 2022, security concerns remain high.

In 2023, the crypto industry experienced a surge in hacking incidents. As per data from PeckShieldAlert, there were over 600 major hack incidents, leading to a staggering loss of approximately $2.61 billion.

These losses were not uniform across the spectrum, with $1.51 billion attributed to hacks (excluding Multichain unauthorized withdrawals) and $1.1 billion to scams.

Despite representing a decrease of 27.78% from the preceding year, the total loss in 2023 is still a significant figure, indicating the severity of the problem.

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Crypto Hacks Surge In 2023 With 600+ Attacks

DeFi protocols, in particular, were the prime targets of these hacks, accounting for 67% of the total stolen value. The data implies that despite their promise of decentralization and increased security, DeFi protocols still have significant vulnerabilities that need to be addressed.

However, the year 2023, despite its high number of hacks, was not the worst in terms of losses from hacking incidents in the crypto industry. That dubious honor still belongs to the year 2022, which marked the worst year on record for cryptocurrency hacks.

In 2022, cryptocurrency hackers stole a massive $3.6 billion, a figure that was significantly higher than the $1.79 billion stolen in 2021.

How Investors Can Protect Their Crypto

Investors should adopt safe habits to combat rising cryptocurrency hacks. These include understanding project mechanisms, diversifying investments, and being wary of unverified projects. Choosing secure digital wallets like MetaMask and Coinbase is critical, as is securing passphrases and private keys.

Learning from past hacks can aid decision-making. Despite improved security, centralized exchanges are not immune to attacks, so caution and robust personal security measures are necessary.