Positive Trends: Crypto Theft Drops by 50% in 2023
In a surprising turn of events, a recent report by blockchain firm TRM Labs indicates a substantial 50% decrease in crypto hacks throughout 2023. This marks a significant improvement compared to the nearly $4 billion lost in 2022. The report attributes this positive trend to three key factors: enhanced industry security measures, intensified law enforcement action, and closer collaboration within the cryptocurrency sector.
Persistent Threat: Infrastructure Attacks Dominate
Despite the overall decline in crypto theft, the report highlights that infrastructure attacks continue to be the primary source, constituting almost 60% of the total crypto losses. Hackers, in these cases, compromise the private keys or seed phrases of cryptocurrency systems, providing them access to funds and the ability to manipulate trades.
Specific Targets: Recent High-Profile Attacks
The month of November 2023 saw a wave of high-profile attacks, including assaults on platforms such as Poloniex, HTX, Heco bridge, KyberSwap, and Kronos Research. Hackers managed to amass an astonishing $290 million within a single month, with three Justin Sun-related entities—HTX, Heco Bridge, and Poloniex—being among the affected platforms, according to Lookonchain.
Evolving Landscape: Cryptocurrency Hacks Remain Uncertain
TRM Labs warns that, despite the positive news, the crypto hacking landscape remains highly dynamic and inherently uncertain. The emergence of a new sophisticated threat could rapidly reverse the decline in hack volumes. Therefore, ongoing vigilance and adaptive security measures are crucial for safeguarding the cryptocurrency ecosystem.
November 2023 Recap: Varied Attacks on Crypto Projects
November 2023 witnessed a variety of attacks on crypto projects, ranging from protocol hacks to phishing campaigns. Notable incidents include the draining of $27 million from a crypto wallet in a one-time hack and the infiltration of the Ethereum layer-2 network Loopring by phishing scammers. The incident lasted nearly the entire day on Nov. 20, prompting Loopring’s team to take immediate action to stem malicious links promoting a fake LRC token airdrop.
