The crypto community is urged not to let its guard down despite a significant decline in crypto hacks during the first quarter of 2023, with a strong warning that it will most likely be a “temporary reprieve, rather than a trend to long term".
Last year was the biggest year ever for crypto hacking, with an estimated $3.8 billion theft, mostly from decentralized finance (DeFi) protocols and North Korea-linked attackers. according to a Chainalysis report earlier this year.
However, this number appears to have dropped dramatically in the first quarter of 2023. According to a May 21 report from TRM Labs, the amount stolen via cryptohacks in the first quarter of 2023 "was less than any other quarter in 2022." .
It was also noted that the average size of attacks was down nearly 65% compared to the prior year period.
“The average size of attacks was also affected in the first quarter of 2023: to USD 10.5 million from almost USD 30 million in the same quarter of 2022, even when the number of incidents was similar (around 40)” .
Despite the crash, history suggests that cryptocurrency users should not be complacent. Crypto hacks dropped significantly in Q3 2022, just ahead of “a record number of hacks” in Q4, which “made 2022 a record year,” TRM Labs noted.
“Unfortunately, this slowdown is probably a temporary relief rather than a long-term trend,” he noted, adding that just a few large-scale attacks could be enough to tip the scales again.
While it was noted that "there is no obvious explanation for the calm", TRM Labs suggested that cryptocurrency mixer sanction Tornado Cash by the US Treasury and the pf arrest and charges against Mango Markets exploiter Avraham Eisenberg may have put off would-be hackers.
Related: Developers must stop crypto hackers or face regulation in 2023
In January, blockchain security firm Certik told Cointelegraph no “expect a breather in exploits, quick loans or exit scams”.
He noted the likelihood of "more hacker attempts targeting bridges in 2023." Such bridges accounted for six of the 10 largest exploits in 2022, in which around $1.4 billion was stolen.
Magazine: Should crypto projects ever negotiate with hackers? Probably
Post navigation
Previous Post
Crypto-mining software may raise costs
