Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The cryptocurrency community is being advised to remain vigilant despite a notable reduction in crypto hacks during the initial quarter of 2023 — with one organization cautioning that this is likely a “temporary reprieve, rather than a long-term trend.”
According to a report from Chainalysis released earlier this year, 2022 marked the highest incidence of crypto hacking on record, with an estimated $3.8 billion taken, mainly from decentralized finance (DeFi) protocols and attackers linked to North Korea.
However, this figure seems to have significantly decreased in the first quarter of 2023. A report by TRM Labs dated May 21 indicates that the total amount stolen through crypto hacks in Q1 2023 “was less than any other quarter in 2022.”
Graph showing hacks and exploits from Q1 2022 – Q1 2023. Source: TRM Labs
It was also observed that the average size of hacks fell by nearly 65% compared to the same period the previous year.
“The average hack size also took a hit in Q1 2023 – to USD 10.5 million from nearly USD 30 million in the same quarter of 2022, even as the number of incidents remained similar (around 40).”
Related Posts
Despite the decline, historical patterns indicate that crypto users should not become complacent. Crypto hacks saw a significant drop in Q3 2022, just before “a record-setting number of hacks” in Q4 that “turned 2022 into a record year,” as noted by TRM Labs.
“Unfortunately, this slowdown is most likely a temporary reprieve rather than a long-term trend,” it stated, adding that just a few large-scale attacks could be sufficient to shift the balance once more.
While it was mentioned that “there is no one obvious explanation for the lull,” TRM Labs proposed that the U.S. Treasury’s sanctioning of cryptocurrency mixer Tornado Cash, along with the arrest and charges against Mango Markets’ exploiter Avraham Eisenberg, may have deterred potential hackers.
Related: Developers need to stop crypto hackers or face regulation in 2023
In January, blockchain security firm Certik informed Cointelegraph that it does not “anticipate a respite in exploits, flash loans or exit scams.”
It highlighted the possibility of “further attempts from hackers targeting bridges in 2023.” Such bridges were responsible for six of the 10 largest exploits in 2022, which resulted in approximately $1.4 billion being stolen.
Magazine: Should crypto projects ever negotiate with hackers? Probably
