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Market

Crypto Hacks In 2023 Caused $1.9 Billion Losses

February 1, 2024 - Around 2 mins mins to read

Key Points:

  • Hacken’s 2023 report points to access control issues causing almost half of crypto hacks.
  • Despite a $1.9 billion loss decline, the report notes a 14% increase in attacks, signaling persistent concerns in crypto security.
The year 2023 brought both challenges and advancements, as per the latest Hacken Security Report. Notably, nearly half of the crypto hacks during this period were linked to access control issues, underscoring the pressing need for robust security measures in the digital asset space.
Crypto Hacks In 2023 Caused $1.9 Billion Losses

Declining Financial Losses Amidst Rising Crypto Hacks

The report reveals that despite a decrease in overall losses, with the crypto market facing a $1.9 billion hit, a 93.6% decline from 2022, the landscape remains concerning. The Lending and Borrowing sector, particularly smart contract-based money markets, experienced the highest impact, closely followed by bridges and exchanges.

However, analysts express reservations about the nature and quantity of incidents in 2023, pointing out a 14% increase in crypto hacks. Singapore and the USA emerged as significant cyber-exploitation hotspots, possibly due to heightened fintech activity, as detailed in the comprehensive report.

A noteworthy concern is the surge in rug pulls, surpassing all other exploits combined, with Solana becoming a focal point. A staggering 100,000 new tokens on Solana in December foreshadow this trend, with investment in public security measures proving crucial to mitigating exit scam risks.

Furthermore, the report emphasizes a critical vulnerability: access control issues, identified as the most damaging in 2023. Only 10% of exploited smart contracts underwent any form of audit, revealing a concerning gap in security practices.

BNB Chain, Ethereum, and Arbitrum emerged as prime targets for hackers, a trend attributed to developers hesitating to audit their protocols.

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.

Arbitrum

BNB Chain

crypto

Crypto Hacks

Ethereum

Hacken Security Report

Solana

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
Market

Crypto Hacks In 2023 Caused $1.9 Billion Losses

Key Points:

  • Hacken’s 2023 report points to access control issues causing almost half of crypto hacks.
  • Despite a $1.9 billion loss decline, the report notes a 14% increase in attacks, signaling persistent concerns in crypto security.
The year 2023 brought both challenges and advancements, as per the latest Hacken Security Report. Notably, nearly half of the crypto hacks during this period were linked to access control issues, underscoring the pressing need for robust security measures in the digital asset space.
Crypto Hacks In 2023 Caused $1.9 Billion Losses

Declining Financial Losses Amidst Rising Crypto Hacks

The report reveals that despite a decrease in overall losses, with the crypto market facing a $1.9 billion hit, a 93.6% decline from 2022, the landscape remains concerning. The Lending and Borrowing sector, particularly smart contract-based money markets, experienced the highest impact, closely followed by bridges and exchanges.

However, analysts express reservations about the nature and quantity of incidents in 2023, pointing out a 14% increase in crypto hacks. Singapore and the USA emerged as significant cyber-exploitation hotspots, possibly due to heightened fintech activity, as detailed in the comprehensive report.

A noteworthy concern is the surge in rug pulls, surpassing all other exploits combined, with Solana becoming a focal point. A staggering 100,000 new tokens on Solana in December foreshadow this trend, with investment in public security measures proving crucial to mitigating exit scam risks.

Furthermore, the report emphasizes a critical vulnerability: access control issues, identified as the most damaging in 2023. Only 10% of exploited smart contracts underwent any form of audit, revealing a concerning gap in security practices.

BNB Chain, Ethereum, and Arbitrum emerged as prime targets for hackers, a trend attributed to developers hesitating to audit their protocols.

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.