Crypto hacks volume fell 50% in 2023, TRM Labs reports

Crypto hacks volume fell 50% in 2023, TRM Labs reports

Despite a near-constant number of hacks, the total amount of crypto stolen has been slashed by over half in 2023, TRM Labs reports.

According to a report published by blockchain firm TRM Labs, hackers managed to pilfer $1.7 billion through November 2023, which a significant decrease in contrast to the nearly $4 billion lost in 2022. The firm attributed the decrease to three key factors: improved industry security measures, stepped up law enforcement action and closer industry coordination.

Crypto hacks volume fell 50% in 2023, TRM Labs reports - 1
Amount stolen by attack type in 2023 | Source: TRM Labs

However, infrastructure attacks are still the most prevalent source of crypto theft in 2023, accounting for nearly 60% of the total crypto losses. The most destructive of these attacks involved hackers compromising the private keys or seed phrases of crypto systems, making it possible for bad actors to steal funds or manipulate trades, the report says.

“Despite the encouraging news, the hacks landscape remains rapidly evolving and inherently uncertain: the emergence of a new sophisticated threat could quickly reverse the decline in hack volumes.”

TRM Labs

As reported in late November 2023, attacks on Poloniex, HTX, Heco bridge, KyberSwap, and Kronos Research earned hackers $290 million in one month. The platforms affected included three Justin Sun-related entities: HTX, Heco Bridge, and Poloniex, according to Lookonchain.

November 2023 saw a sleuth of attacks on crypto projects, ranging from protocol hacks to phishing campaigns. In addition to $27 million drained from a crypto wallet in a one-time hack, the X account of the Ethereum layer-2 network Loopring was also infiltrated by phishing scammers. The incident lasted nearly all day on Nov. 20 before Loopring’s team stemmed malicious links promoting a fake LRC token airdrop.

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