A recent DeFi report has revealed that hackers stole $2 billion in cryptocurrencies in 2023, however marking a downward trajectory in the amount stolen, compared to previous years.
The report outlined top crypto heists recorded this year, including the hack against Euler Finance, a non-custodial DeFi protocol on Ethereum that allows users to lend and borrow almost any crypto asset, which hackers stole over $195 million from the platform.
This hack caused a contagion that spread through multiple decentralized finance (DeFi) protocols, and at least 11 protocols other than Euler suffered losses due to the attack.
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Other heists listed include hacks against Multichain ($126 million), BonqDAO ($120 million), Polonoex ($114 million), and Atomic Wallet ($100 million), among hundreds of others.
Defi wrote in the report,
“This amount, though dispersed across various incidents, underscores the persistent vulnerabilities and challenges with the DeFi ecosystem. 2023 stood as a testament to both the ongoing vulnerabilities and the strides made in addressing them, even as interest in the space was relatively muted by the ongoing bear market in the first half of the year”.
DeFi’s report also corroborates with that of TRM Labs, which disclosed that $1.7 billion was stolen in crypto as of mid-December 2023.
TRM Labs noted that even with any additional hacks in December, this year will likely end with significantly lower totals than 2022. Last year’s tally of almost $4 billion from crypto hacks included several large thefts, such as a $600 million-plus attack on a blockchain network called Ronin Bridge that was connected to the Axie Infinity game.
Speaking on this Ari Redbord, global head of policy and government affairs at TRM said,
“While we are always one Ronin-size hack away from a record-setting year, the global focus on cybercrime is likely to, at least in part, mitigate some of the activity which is critical for the overwhelmingly lawful ecosystem to grow”.
TRM disclosed that this year, the top 10 hacks had netted criminals almost 70% of all stolen funds. Attacks against the decentralized lending app Euler Finance, Multichain bridge connecting different blockchains, and Poloniex crypto exchange netted $100 million each, for example.
TRM added that Infrastructure attacks such as private-key theft that gives hackers access to a crypto project’s servers or software to steal funds or manipulate trades contributed to nearly 60% of the total stolen this year.
As billions of dollars in crypto are continuously lost to hackers every year, experts believe that the rising cases of incessant hacks could be caused by inadequate security measures. Studies reveal that crypto exchanges are the prime targets of most hacking events, as these hackers employ advanced tactics to launch assaults on platforms due to perceived weak security.
Some of their strategies include phishing schemes, using fake websites and emails, and posing as legitimate crypto businesses or sites. Due to the surging cases of crypto fraud, several platforms have launched new security updates to protect customers’ funds from fraudsters.