In 2023, the cryptocurrency industry saw a significant decrease in hack-related losses [2], with a total of just over $1.8 billion lost from 751 security incidents [2], representing a 51% reduction compared to the previous year [2].
Description
This information was revealed in CertiK’s “Hack3d: The Web3 Security Report 2023,” which provided an in-depth analysis of the state of security in the Web3 space. The report highlighted the third quarter of 2023 as the period with the highest losses [2], totaling over $686 million [2]. Private key compromises were identified as particularly costly [3], resulting in losses of over $880 million across 47 incidents [2]. Ethereum topped the list of blockchain losses [2], with $686 million lost in 224 incidents [2], while BNB Chain reported lower total losses of $134 million [2]. Cross-chain interoperability challenges contributed to nearly $800 million in losses [2].
CertiK’s co-founder [2], Ronghui Gu [2], sees the reduction in losses as a positive development and attributes it to proactive security measures and the broader bear market [2]. The decline in losses indicates advancements in blockchain security and a maturing industry ready to face cyber threats [2]. CertiK predicts positive growth in blockchain security in 2024 and hopes to see a continued decline in losses [3]. However, the report also warns that the industry’s security will be tested during the crypto bull market [3].
Conclusion
The report by CertiK reveals that $1.8 billion was lost to security incidents in 2023 [4], a 51% decrease compared to the previous year [1] [2] [4]. This reduction in losses is seen as a positive development [2], indicating advancements in blockchain security and a maturing industry [2]. Proactive security measures and the broader bear market are attributed to this decline. CertiK predicts further growth in blockchain security in 2024 and hopes for a continued decline in losses [3]. However, the report also highlights the potential challenges the industry may face during the crypto bull market.
References
[1] https://www.bitcoininsider.org/article/237615/certik-report-losses-due-crypto-hacks-down-51-2023
[2] https://www.bitdegree.org/crypto/news/digital-asset-security-improves-as-crypto-hacks-decline-in-2023
[3] https://cryptonews.com/news/1-8-billion-cryptos-lost-across-751-security-breaches-in-2023-certik-report.htm
[4] https://www.thecoinrepublic.com/2024/01/06/exit-scams-dominated-the-web3-sector-in-2023-with-2-billion-lost/
