Crypto Industry Sees Over 50% Decline in Losses in 2023
The crypto world has witnessed a substantial reduction in losses from security incidents in 2023. According to CertiK’s annual 2023 web3 security report, losses totaled nearly $2 billion, marking a 51% decrease from 2022. The report identifies these losses as the value of digital assets stolen by malicious actors, with major incidents like the $200 million Mixin and the $197 million Euler Finance hacks contributing to $1.11 billion of the total losses. The average median loss for other incidents stood at around $101,000.
Interestingly, a decline in the frequency of hacks and scams was observed over weekends in 2023, with Tuesdays to Fridays witnessing more incidents and Mondays showing fewer activities. Sundays turned out to be the quietest days. CertiK’s co-founder and CEO Ronghui Gu mentioned that around 12% ($219 million) of the total losses were recovered following retroactive bug bounty negotiations. Though these amounts were returned, they were not deducted from the total reported losses as they still represent stolen funds.
The report suggests that the reduction in losses could be a positive sign of improving security measures. However, Gu warns against complacency and stresses the need for ongoing vigilance among projects and consumers alike. There’s a call for heightened awareness and education among users on safeguarding their assets, utilizing hardware wallets, enabling two-factor authentication, and recognizing common phishing tactics.
Gu advocates for a proactive and comprehensive approach to security in the Web3 space, emphasizing the need for both robust technical safeguards and a security-centric culture. He underscores that even platforms with few or no incidents should not become complacent but should continue enhancing their security measures. His steadfast advice is clear: prioritize security above all, as functionality is moot without it. The industry, as a whole, is encouraged to reduce losses further, moving away from the billion-dollar loss figures.
