Blockchain security firm PeckShield has released data summarizing the financial impact of hacks and scams in the blockchain space for 2023. The report indicates a total loss of $2.61 billion, a figure that excludes multichain losses. This amount represents a 27.78% decrease from 2022’s total of approximately $3.6 billion.
PeckShield’s analysis revealed that over $674 million was recovered from the 600+ large-scale hacks tracked, amounting to 25% of the stolen crypto. This recovery rate marks a significant increase from 2022, where only about $133 million was recouped. The firm attributes this improvement to more active negotiations with hackers, the implementation of bug bounty programs, and on-chain sleuthing to identify vulnerabilities.
The firm emphasized the role of collaboration with centralized exchanges, Tether, and law enforcement in freezing and recovering funds upon detection.
The report highlights that 40% of the hacks in 2023 involved flash loan attacks. Despite improvements in DeFi security, PeckShield notes that DeFi remained a primary target, with 67% of the year’s losses occurring in this sector, compared to 33% in centralized finance.
In terms of loss causes, 58% were attributed to hacks, while 42% resulted from scams.
There has been a notable shift in the cryptocurrencies targeted by malicious actors. While Bitcoin dominated illicit transaction volumes from 2018 to 2021, stablecoins have increasingly become the focus in 2022 and 2023.
CertiK co-founder Ronghui Gu, in a statement to Cointelegraph, referred to 2023 as a “positive development” in blockchain security. He cited the growth of bounty platforms and proactive security measures as encouraging signs.
The PeckShield report provides a comprehensive overview of the state of blockchain security in 2023, highlighting both the challenges and the progress made in combating hacks and scams. The increased recovery rate and the evolving nature of threats underscore the dynamic and complex landscape of blockchain security.
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