Cyberattacks against token protocols and cryptocurrency projects in the first quarter of 2023 decreased by 70% compared to the same period last year when hacking was rampant, according to a report from security firm TRM Labs. became clear.
This year’s January-March quarter saw the lowest theft of any quarter in 2022, indicating an improvement in security measures and an overall decline in easy exploits.
The average hacking scale in the first quarter of 2023 also decreased from about $30 million in the same quarter of 2022 to about $10.5 million (about ¥1.45 billion), but the number of incidents decreased. The number was similar (about 40), TRM Labs said in a report.
“Hack victims have so far recovered more than half of the stolen funds in the first quarter of 2023,” the company added. “For example, in March 2023, a hacker exploited a bug in Tender.fi’s code and managed to steal over $1.5 million. But then this hacker contacted Tender.fi. and agreed to return the funds in exchange for a bounty of 62.15 ETH ($850,000, equivalent to 110 million yen) for finding the bug.”
The crypto ecosystem has long been a target for hackers due to its inherent vulnerabilities. However, the significant drop in cryptocurrency hacks in Q1 2023 suggests that the industry has proactively addressed these challenges and implemented security measures.
Last year was the worst year in history, with more than $3.7 billion lost to various attacks, hacks and frauds. Attackers will earn more than $3.2 billion in 2021. But 2022 will see a $325 million attack on popular cross-chain service Wormhole, followed by a $625 million attack on Axie Infinity’s Ronin bridge. It got off to an even worse start with the $850 million attack, and the $200 million attack on Bridge’s Nomad.
According to TRM Labs, the decline in cryptocurrency hacks this year can be attributed to a variety of factors, including improved cybersecurity, stricter regulations, and increased cooperation among industry participants.
But concerns remain.
“Unfortunately, this decline is likely to be a temporary reprieve rather than a long-term trend,” said TRM Labs. He adds that a few large-scale attacks account for the majority of the money stolen from cryptocurrency platforms and users, so the total amount stolen can fluctuate significantly from month to month.
The report concludes that “the top 10 hacks of 2022 will account for about 75% of the total stolen value in 2022.”
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: Attackers Left Empty-Handed as Crypto Hacks Drop 70% in Q1 2023