ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Hackers Rocked the Crypto Space by Swindling $2 Billion in 2023; But There's Good News too

Despite this colossal figure, the amount stolen demonstrated a notable decrease compared to previous years, shedding light on both the vulnerabilities and improvements within the decentralized finance (DeFi) ecosystem
PUBLISHED JAN 7, 2024
Pexels | Photo by Crypto Crow
Pexels | Photo by Crypto Crow

Crypto exchanges crashing to reveal scams, major crypto heists, and investors falling for fake virtual assets have plagued the blockchain economy for past few years. In a year marred by financial instability and market fluctuations, the cryptocurrency world faced another significant blow with hackers swindling a staggering $2 billion in 2023. Despite this colossal figure, the amount stolen demonstrated a notable decrease compared to previous years, shedding light on both the vulnerabilities and improvements within the decentralized finance (DeFi) ecosystem.

Pexels | Sora Shimazaki
Pexels | Sora Shimazaki

Among the notable incidents, the attack on Euler Finance, a non-custodial DeFi protocol on the Ethereum network, stood out as the largest, as hackers robbed more than $195 million in cryptocurrencies during the heist. This breach triggered a contagion effect, affecting at least 11 other DeFi protocols besides Euler. The interconnected nature of these platforms exposed the fragility of the DeFi ecosystem.

Among other crypto heists, Multichain suffered a loss of $126 million, followed by BonqDAO ($120 million), Polonoex ($114 million), and Atomic Wallet ($100 million). The report painted a grim picture of the challenges faced by the DeFi space throughout the year.

Image Source: Pexels/RDNE Stock project
Image Source: Pexels/RDNE Stock project

The DeFi report emphasized the persistent vulnerabilities within the ecosystem, acknowledging that the dispersed nature of the stolen funds underscored ongoing challenges. Despite strides made in addressing these vulnerabilities, 2023 served as a testament to the need for continuous improvement in security measures. The report noted that the bear market in the first half of the year contributed to relatively muted interest in the DeFi space.

The findings of the DeFi report were supported by TRM Labs, which disclosed that $1.7 billion had been stolen in crypto by mid-December 2023. Despite potential additional hacks in December, the total losses were expected to be significantly lower than the previous year. TRM Labs emphasized the importance of global attention on cybercrime, suggesting that increased focus could help mitigate illicit activities and foster the growth of a predominantly lawful ecosystem.

Ari Redbord, global head of policy and government affairs at TRM, acknowledged the potential for a record-setting year with a major hack but highlighted the positive impact of the global cybersecurity focus.

Cover Image Source: Pexels | Photo by Photo by Tima Miroshnichenko
 Image Source: Pexels | Photo by Photo by Tima Miroshnichenko

TRM Labs' analysis revealed that infrastructure attacks, particularly those involving private-key theft, constituted nearly 60% of the total stolen funds in 2023. These attacks, which grant hackers access to a crypto project's servers or software, have become a prevalent method for stealing funds and manipulating trades. The top 10 hacks accounted for almost 70% of all stolen funds, indicating a concentration of criminal activity within a limited number of high-impact breaches.

As billions of dollars in crypto continue to be lost to hackers annually, experts point to inadequate security measures as a primary catalyst for the rising cases of incessant hacks. Crypto exchanges, in particular, remain prime targets for hackers employing advanced tactics such as phishing schemes, fake websites, and posing as legitimate crypto entities.

MORE ON MARKET REALIST
Costco's executive membership costs $130 annually, and with it, you can enter the store up to an hour earlier on most days.
1 hour ago
Not only the contestants, but the audience also took a dig at the host with their survey responses.
2 hours ago
The guest was happy that she took the vase from her father's estate after falling in love with it.
23 hours ago
Rick Harrison called in a forensic document examiner because he wasn't sure Carlo Gambino would sign his own checks.
1 day ago
The guest always believed his investment in the 1984 Howard Finster painting would pay off one day.
1 day ago
While the player, Kristin Cook was happy to take home over $26,000, fans were disappointed.
1 day ago
The contestant, Erwin Paminiano, was stumped by the Bonus Round puzzle, but took the loss in stride.
2 days ago
The host put his arm around the player, Daryl, and said he was 'shocked' when he got the correct answer.
2 days ago
Once again, Ken Jennings proved that players can have a lot of fun on the serious game show.
2 days ago
While Harvey was expecting to hear some funny responses, the ladies blew his mind with their powerful answers.
3 days ago
The player, Clint Ingalls' disastrous choice of letters gave him no chance in the end.
3 days ago
The show's expert, Alan Fausel, was astonished by the fabulous Richard Cosway drawing.
3 days ago
The high school teacher could barely contain her excitement after cracking the Bonus Round puzzle.
4 days ago
The founders of Vade Nutrition couldn't the refuse the offer from Mark Cuban and Alex Rodriguez.
4 days ago
The creator claimed that the Costco avocado didn't feel or taste real, especially when compared to a ripe, organic one.
5 days ago
The player, Kenneth Blount-Hames, was stumped by a simple, everyday phrase in the final round.
5 days ago
The painting had been with the guest for 30 years, and she was curious about it.
6 days ago
It was hard for Harvey to digest what he was hearing from the senior players.
6 days ago
The best friends, Hanna Chung and Laura Tarpley, got tricked by just one word in the end.
6 days ago
The player, Shannon Hunt got the host excited before missing the puzzle by a few letters.
6 days ago