Blockchain security firm PeckShield has reported a 27.78% decrease in cryptocurrency losses due to hacks and scams in 2023, with the total loss amounting to $2.61 billion, excluding multi-chain loss attacks. This figure contrasts with the approximately $3.6 billion lost to global cyber attacks in 2022.
PeckShield Team’s Report for the Year 2023
PeckShield’s analysis of over 600 large-scale attacks revealed that $674 million, or 25% of the stolen cryptocurrency, was recovered, marking a significant rise from the $133 million recovered in 2022. The firm attributes this improvement to more active negotiations with hackers and the implementation of bug bounty programs.
The security firm also highlighted the importance of collaboration with centralized exchanges, Tether, and law enforcement in freezing and recovering stolen assets. They noted that flash loan attacks comprised 40% of all hacks in 2023, indicating a specific vulnerability in the crypto ecosystem.
While some analysts see a positive trend in DeFi security leading to reduced crypto theft, PeckShield warns that DeFi remains a prime target. The firm’s data shows that 67% of the losses in 2023 were in DeFi, with hacks accounting for 58% and scams for 42% of the losses.
The report also observes a shift in the focus of illicit crypto activities, with stablecoins increasingly being used for illegal transactions, a change from Bitcoin’s previous dominance in this area from 2018 to 2021.