Friday, December 1, 2023

Crypto Hacks Falling in Q1 Are Only a ‘Temporary Reprieve’ – Blockchain Company


The cryptocurrency community is being urged not to let their guard down despite the significant drop in cryptocurrency hacks during the first quarter of 2023 — with one company warning, this is likely to be a “temporary reprieve, not a long-term trend.”

2022 was the biggest year for cryptocurrency hacks in history, with an estimated $3.8 billion stolen, primarily from decentralized finance (DeFi) protocols and North Korean-linked attackers, according to a report by Chainalysis earlier this year.

However, that number appears to have dropped significantly in the first quarter of 2023. According to a May 21 report by TRM Labs, the amount stolen through crypto hacks in the first quarter of 2023 “was less than in any other quarter.” in 2022.”

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Graph showing breaches and exploits from Q1 2022 to Q1 2023. Source: TRM Labs

It was also noted that the average penetration volume decreased by approximately 65% ​​compared to the previous year period.

“The average breach size also took a hit in the first quarter of 2023 – to $10.5 million from about $30 million in the same quarter of 2022, although the number of incidents was similar (about 40).”

Despite the decline, history suggests that cryptocurrency users should not be complacent. Cryptocurrency hacks declined significantly in the third quarter of 2022, just ahead of the “record number of hacks” in the fourth quarter that “turned 2022 into a record year,” TRM Labs noted.

“Unfortunately, this slowdown is more likely a temporary reprieve than a long-term trend,” she noted, adding that just a few large-scale attacks might be enough to tip the scales again.

While noting that “there is no single clear explanation for the calm,” TRM Labs suggested sanctioning cryptocurrency mixer Tornado Cash by the US Treasury Department, and the arrest and indictment of Mango Markets scalper Avraham Eisenberg could discourage him. hackers.

­­Related: Developers need to stop crypto hackers or face regulation in 2023

In January, blockchain security firm Certik told Cointelegraph that it “doesn’t expect a respite in exploits, flash loans, or exit scams.”

And she indicated the possibility of “other attempts by hackers to target bridges in 2023.” Such bridges were responsible for six of the 10 biggest exploits in 2022, which saw about $1.4 billion stolen.

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