In 2023, a total of over $1.8 billion in digital assets was lost across 751 security incidents, as reported in blockchain security firm CertiK’s annual report titled ‘Hack3d: The Web3 Security Report 2023.’ Although this figure remains substantial, it marks a significant 51% reduction from the losses incurred in 2022, which amounted to $3.7 billion due to hacks and other incidents.
Losses related to crypto hacks experienced a significant drop of 51% in 2023
CertiK’s data, compiled on January 3, sheds light on the state of Web3 security throughout the past year. The third quarter of 2023 stood out with the highest recorded losses, exceeding $686 million. Notably, private key compromises continued to be the most expensive attack vector, causing over $880 million in losses across 47 incidents in 2023.
The Ethereum network led in losses related to blockchains, with $686 million across 224 incidents, averaging $3 million per event. In contrast, BNB Chain experienced 387 security incidents but reported total losses of only $134 million—significantly less than Ethereum’s tally.
The security report emphasized that cross-chain interoperability remains a challenge for the crypto industry, with nearly $800 million in losses attributed to security breaches affecting multiple blockchains.
2023 witnessed a 51% reduction in losses attributed to cryptocurrency hacks
Ronghui Gu, the co-founder of CertiK, conveyed to Cointelegraph that 2023 marked a positive development in blockchain security, citing the growth of bug bounty platforms and proactive security measures as encouraging signs. Gu expressed hope for a continued decline in losses throughout 2024.
Gu acknowledged the 51% decline in losses, attributing it to the broader bear market, which witnessed declining token and treasury valuations. However, he emphasized that if losses remain low during the bull run, it would indicate that the Web3 industry is effectively learning its security lessons.
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