According to a new report by blockchain intelligence company TRM Labs, cryptocurrency hacks have decreased by 70% in Q1 2023 compared to the same period in 2022.Â
Approximately $400 million was stolen in nearly 40 separate attacks during the first quarter of 2023. This total is less than the amount stolen in each quarter of the previous year, 2022. The average hack size also decreased to $10.5 million from nearly $30 million in Q1 2022, even though the number of incidents was similar.Â
Victims have been able to recover over half of all stolen funds in Q1 2023. The reduction in crypto hacks suggests that the industry has been actively addressing these challenges and implementing proactive security measures.
However, TRM Labs warns that this slowdown is most likely a temporary reprieve rather than a long-term trend. The nature of cryptocurrency hacks and the insights gleaned from previous cycles provide a stronger indication of what might be at play.Â
The industry has seen the continued implementation of anti-money laundering standards by virtual asset service providers, increased efforts by law enforcement and regulators to go after bad actors, and the growing sophistication of blockchain intelligence tools.
Unfortunately, the cryptocurrency ecosystem can result in massive losses for investors, traders, DeFi projects, and exchanges, in addition to damaging the reputation and trust of the industry.
Therefore, widespread adoption of industry security measures and increased user education can help prevent the industry from revisiting or exceeding the record-setting $3.7 billion stolen in 2022.
Also Read: North Korean Hackers Drained Japan’s Crypto Reserve: $721M Gone
