Crypto Worth $674 Million Successfully Recovered in 2023 after Being Stolen

A blockchain security firm called PeckShield has released data summarizing the losses incurred due to hacks and scams in 2023. The figures indicate a total loss of $2.61 billion throughout the year, excluding losses across multiple chains.

The report, disclosed on January 29, reveals a 27.78% decrease compared to 2022 when cyber thefts globally amounted to approximately $3.6 billion.

Moreover, the team conveyed that the amount recovered showed a significant increase compared to 2022, estimated at around $133 million. They attributed this rise to more active negotiations with hackers and the emergence of bug bounty programs.

The firm also emphasized the effectiveness of collaborating with centralized exchanges, Tether, and law enforcement to freeze funds upon detection, potentially leading to fund recovery.

In addition to the recovered amounts, various data points were highlighted, including flash loans, decentralized finance (DeFi), and the discrepancy in volume between hacks and scams. Notably, 40% of the hacks in 2023 involved flash loan attacks.

Despite claims of improved DeFi security reducing crypto theft in 2023, it was pointed out that DeFi remained a prime target for hacks and scams. CertiK co-founder Ronghui Gu described 2023 as a "positive development" in blockchain security, citing the growth of bounty platforms and proactive security measures.

Furthermore, it was shared that in 2023, laundered stolen funds decreased by 25% compared to the previous year, from $460 million in 2022 to $342 million in 2023.

Despite this reduction, it was highlighted that 67% of the losses in 2023 occurred in DeFi, with the remaining 33% in centralized finance. Hacks accounted for 58% of the losses, while scams contributed to 42%.

Moreover, malicious actors diversified their targets, with Bitcoin dominating illicit transaction volume from 2018 to 2021. However, in 2022 and 2023, stablecoins began to play a more significant role in illicit transactions.