Cybercriminals have siphoned off over $1 billion from the crypto industry via 75 hacks in 2023.
This figure indicates a drop from 2022, when over $3.2 billion was stolen across 60 hacks. However, this decrease is not due to enhanced security measures or a decline in hacker interest.
According to Eric Jardine, a cybercrime research lead at Chainalysis, the decline in theft value is a result of market conditions. “Declines in the value stolen during 2023 are a function of prevailing market prices for the assets in question,” remarked Jardine.
The crypto industry, already tainted by numerous scandals and allegations of facilitating theft and money laundering, now faces questions about its security and lack of proper regulation.
Experts warn of an upcoming surge in smaller, more frequent heists. Jake Moore of cybersecurity firm ESET suggested that the appeal of hacking platforms that act as banks but lack robust protection could grow if people continue to store money in cryptocurrencies.
Data reveals the biggest hack of 2023 was on the Hong Kong-backed crypto network Mixin, which saw $200 million stolen. However, smaller heists are becoming more common, with only 11 of the 75 recorded incidents involving thefts of over $10 million.
Experts suggest that the lack of media coverage for smaller hacks could embolden criminals. They urge for clear rules to regulate the industry and increased education on how consumers can protect their assets.
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