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The crypto community is being urged not to let their guard down despite a significant drop in crypto hacks during the first quarter of 2023 – with a firm warning that this is most likely a “temporary suppression rather than a long-term trend”.
2022 was the biggest year for crypto hacking in history, with an estimated $3.8 billion stolen, mainly from decentralized finance (DeFi) protocols and attackers linked to North Korea. According per a report from Chainalysis earlier this year.
However, this number is set to drop drastically in the first quarter of 2023. According to a May 21 report by TRM Labs, the amount stolen through crypto hacks in Q1 2023 was “less than in any other quarter in 2022.”
It was also noted that the average hack size dropped by about 65% compared to the same period last year.
“The average hack size also took a hit in Q1 2023 – from around USD 30 million to USD 10.5 million in the same quarter of 2022, even though the number of incidents remained the same (around 40).”
Despite the decline, history tells us that crypto users should not become complacent. TRM Labs reported that crypto hacks dropped significantly in the third quarter of 2022, just before a “record-setting number of hacks” in the fourth quarter, which “turned 2022 into a record year”.
“Unfortunately, this downturn is most likely a temporary suppression rather than a long-term trend,” it said, adding that a few large-scale strikes could be enough to tip the scales again.
While it was noted that “there is no clear explanation for the lull,” TRM Labs suggested the approval of cryptocurrency mixer Tornado Cash by the US Treasury, and the arrest and indictment of Mango Markets exploiter Avraham Eisenberg, could be discouraged. Is. Hackers.
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In January, blockchain security firm Certik told Cointelegraph that it “does not expect a respite from exploits, flash loans, or exit scams.”
It noted the possibility of “further attempts by hackers targeting the bridges in 2023”. Such bridges accounted for six of the 10 biggest exploits in 2022, with approximately $1.4 billion stolen.
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