Security threats are a serious concern in crypto. Hackers have been a persistent concern, but fortunately, 2023 recorded $1.3 billion fewer crypto hacks than in 2022. Last year, crypto hacks recorded the highest hacks, whereby $3.8 billion worth of cryptocurrency was stolen from institutions and investors.
A Hong Kong-based crypto company suffered a major hack where $200 million was stolen in a data breach that happened in September. Another major hack occurred in March when scammers were able to get away with $197 million from a crypto lending platform called Euler Finance.
De.Fi, the Web3 security firm that runs the REKT database, announced that there are persistent vulnerabilities in the Decentralized Finance (DeFi) ecosystem, emphasizing that these hacks can be a testimony. Although 2023 witnessed a dull interest in the cryptocurrency market due to the bear trend in the first quarter of the year, the year stands as a testament to the advancements and vulnerabilities made in addressing them.
According to research, the decrease in these hacks is due to ongoing education, better security-enhanced systems, and the slow peak of the cryptocurrency price. In contrast with the $40 billion loss from companies such as FTX Exchange, Terraform Lab, and Celcius, the decline in hacks is significant. Moreover, the cryptocurrency market hasn’t been at its best since the decline in price in 2021. The market has been struggling to maintain its bullish trend; the cryptocurrency coins have lost over 85% of their value since 2021.
Which are the Most Affected Coins?
Ethereum, the second-largest cryptocurrency, recorded the highest loss in cryptocurrency in 2023. With the highest number of active users and value-locked, Ethereum has lost over $1.30 billion in value. In July, there was a $230 million exploit from Multichain, a cross-chain platform. Additionally, Solana witnessed a choking theft of $1 million, while BNB came in second after an exploit of $113.3 million was stolen from 213 incidents. Following the recorded figures, it is crystal clear that Ethereum is the most affected coin due to its large number of users across the world.
In the unruly world of cryptocurrency, 2023 has witnessed a significant decrease of 40% in theft and scams. To date, cryptocurrency theft and scams have amounted to $2.38 billion. Although curbing the cyber security threat might take time, individuals must stay vigilant and educated about these targeted approval phishing scams. With the current increase in the price of cryptocurrency, individuals should be alert to scammers. However, law enforcement is doing its best to ensure that scammers are eliminated at all costs.