E-way Robbery: Hackers stole over $1.7 bn in crypto in 2023, number of cyberattacks incidents rise

In 2023, hackers siphoned approximately $1.7 billion from cryptocurrency platforms, marking a notable decrease from the record high set in the previous year, according to data compiled by blockchain research firm Chainalysis.

Despite the reduced total losses, the number of individual incidents targeting these platforms increased from 219 in 2022 to 231 in 2023. This surge can be attributed, in part, to the collapse of popular exchanges and the overall decline in the value of cryptocurrencies.

Chainalysis experts linked the decline in losses to a reduction in cyber thefts targeting decentralized finance (DeFi) platforms, which enable customers to borrow funds, speculate on prices, and trade coins.

The report noted a significant drop in the total value stolen from DeFi platforms, falling by 63.7 per cent year-over-year to $1.1 billion in 2023. July 2023 saw the highest number of hacks in a single month, with 33 different incidents.

Cybersecurity experts, interviewed by Chainalysis, indicated that many hacks occurred due to poorly built platforms prioritizing growth over robust security systems. Mar Gimenez-Aguilar, lead security architect and researcher at blockchain cybersecurity firm Halborn, highlighted historical vulnerabilities in smart contract design and implementation. However, there is an observed improvement, with many DeFi protocols enhancing security measures.

While the overall amount stolen from crypto platforms in 2023 decreased significantly, Chainalysis emphasized that attackers are becoming more sophisticated and diverse in their exploits. The decline is likely a result of a combination of lower overall DeFi activity and improved security practices.

Notably, North Korean threat actors remain active in the crypto hacking ecosystem, having stolen approximately $1 billion in 2023. Although lower than the previous year, the number of incidents attributed to North Korea reached a record high of 20. These cyber espionage groups, such as Kimsuky and Lazarus Group, targeted DeFi platforms, exchanges, wallet providers, and centralized services.

Chainalysis highlighted that the attackers took extensive measures to obfuscate funds, utilizing mixing services like Sinbad and various platforms and services for money laundering. The United Nations Security Council has sought information on North Korea’s use of cryptocurrency thefts to circumvent sanctions, emphasizing the significance of cyberattacks in supporting the nation’s military budget.

(With inputs from agencies)