The first quarter of 2023 has witnessed a significant decline in crypto hacks, as reported by TRM Labs on May 21. However, this drop does not imply that individuals within the crypto community should become complacent; TRM Labs suggests that this decreased activity is most likely a “temporary reprieve, rather than a long-term trend.” The year 2022 saw an unprecedented amount of stolen funds, which totaled over $3.8 billion, primarily from decentralized finance (DeFi) protocols and North Korea-linked attackers.
Compared to Q1 of 2022, the average hack size in Q1 2023 has plummeted by nearly 65%, from almost $30 million to a mere $10.5 million. Furthermore, the overall amount stolen through crypto hacks in Q1 2023 was significantly lower than any other quarter in 2022, with only around 40 incidents taking place.
Historical data suggests that a drop in the number of crypto hacks does not guarantee a permanent trend. In fact, 2022 saw a decline in crypto attacks during Q3 before witnessing a record-setting number of hacks in Q4. This increase in hacks towards the end of 2022 turned the year into the most prominent one in terms of crypto-related thefts.
As such, it is imperative that the crypto community not let their guard down and continue to maintain vigilance in terms of security. Even a few large-scale attacks could be sufficient to disrupt the trend of reduced crypto hacks.
TRM Labs states that “there is no one obvious explanation for the lull” in Q1. However, several events, such as the sanctioning of cryptocurrency mixer Tornado Cash by the U.S. Treasury and the arrest and charge of Mango Markets’ exploiter Avraham Eisenberg, may have deterred potential hackers.
Moreover, in January, blockchain security firm Certik suggested that it did not “anticipate a respite in exploits, flash loans, or exit scams.” According to Certik, hackers will likely continue to target bridges in 2023, which were the source of six of the largest exploits in 2022, resulting in around $1.4 billion stolen.
In conclusion, while the decline in crypto hacks during the first quarter of 2023 is indeed an encouraging development, it is crucial for the crypto community to remain vigilant and not grow complacent in terms of security. As history has shown, trends can shift suddenly, and a resurgence of large-scale attacks could negate any progress made thus far.
Source: Cointelegraph
