According to blockchain security firm PeckShield, about $2.61 billion in losses were recorded in the crypto industry in 2023. Also, stolen assets worth $674 were recovered successfully from over 600 large-scale hacks in the same year.
PeckShield stated in its report dated January 29 that the amount represents a decrease of 27.78% compared to 2022 when global cyber thefts totaled approximately $3.6 billion.
In addition, the security firm emphasized that it procured more than $674 million from the over 600 large-scale breaches it monitored, accounting for 25% of the cryptocurrency stolen.
The PeckShield team stated that the amount recovered from breaches substantially increased from 2022, when only about $133 million was estimated to be recovered.
The security team attributes the funds’ recovery to increased engagement in negotiations with hackers and the proliferation of bug bounty programs.
“Engaging in active negotiations with hackers can lead to the return of stolen funds. […] Implementing bug bounty programs or on-chain sleuthing to identify hackers and vulnerabilities in the system can enhance security.”
Fund recovery is also possible, according to PeckShield, through collaboration with centralized exchanges, Tether, and law enforcement to block undetected funds.
PeckShield also highlighted another set of data points: the volume disparity between breaches and scams, decentralized finance (DeFi), and flash loans, in addition to the sums recovered from hacks. According to the data, forty percent of the breaches in 2023 were flash loan attacks.
PeckShield emphasized that DeFi remained a primary target for hacks and scams despite the contention that gains in DeFi security in 2023 resulted in a decline in the quantity of cryptocurrency stolen.
Ronghui Gu, co-founder of CertiK, told Cointelegraph on January 4 that 2023 marked a “positive development” in blockchain security. The executive regarded the expansion of proactive security measures and bounty platforms as positive indicators for the coming year.
Notwithstanding this, PeckShield emphasized that 33% of the losses in 2023 occurred in centralized finance, and 67% occurred in DeFi. It also noted that scams accounted for 42% of the losses, while breaches accounted for 58%.
Additionally, malicious actors have diversified the cryptocurrencies they target for their operations. Bitcoin exhibited a preponderance over the trading volume of illicit transactions from 2018 to 2021. In contrast, the situation changed in 2022 and 2023, when stablecoins began to account for a more significant proportion of illegal transaction volume.
