December 29, 2023

Hackers Seized around $1.8 Bln in Crypto in 2023

Crypto Hackers

Crypto Hackers

A recent report by blockchain security platform Immunefi revealed that a total of $1.8 billion was lost to Web3 hackers and scammers in 2023.

The report stated that 17% of the losses were attributed to the North Korea-linked Lazarus Group. The biggest hack of the year, in terms of losses, was on the peer-to-peer trading platform Mixin Network, resulting in over $200 million of losses to crypto investors. Euler Finance’s lending platform exploit came in second place with $197 million of losses, and Multichain’s cross-chain bridge protocol hack resulted in losses of $126 million, ranking third on the list.

The report further revealed that approximately $309 million of the losses were associated with the Lazarus Group. This cybercriminal organization is known to have ties to the Democratic People’s Republic of Korea, also known as North Korea. The losses include those from the Atomic Wallet hack ($100 million), CoinEx ($70 million), Alphapo ($60 million), Stake, CoinsPaid, and others as well.

According to a report, most of the funds lost in the cryptocurrency industry were due to hacks rather than fraud. Out of the total $1.8 billion lost, only $103 million was lost due to clear fraud schemes such as rug pulls, while hacks and exploits accounted for over $1.6 billion. The report further revealed that a majority of the losses, which is $1.3 billion, were from protocols that claimed to be decentralized. In contrast, only $409 million was lost from centralized finance (CeFi) crypto protocols.

It is worth noting that the $1.8 billion in losses represents a significant decline of more than 52% from the previous year. In 2020, blockchain security platform Chainalysis reported over $3.8 billion in stolen funds from the cryptocurrency industry.

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