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The first quarter of 2023 saw a decline in crypto hacks compared to the previous year, but experts are warning that this may be a temporary situation rather than a long-term trend.
In 2022, crypto hacking reached an all-time high, with approximately $3.8 billion stolen, largely from decentralized finance protocols and attackers linked to North Korea.
However, recent reports indicate a significant reduction in the amount stolen during Q1 2023. TRM Labs reported that the first quarter of this year had the lowest number of crypto hacks compared to any quarter in 2022. The average size of these hacks also dropped by nearly 65% compared to the same period in the previous year, with an average hack size of $10.5 million.
Despite this decline, experts caution against complacency. They point out that a similar decline occurred in Q3 2022 before a surge in hacks during Q4, which made 2022 a record-breaking year for crypto hacking. TRM Labs notes that the recent slowdown is likely temporary and that a few large-scale attacks could easily reverse the trend.
Crypto Hacks Subside in Q1 2023: Factors and Vigilance Required
TRM Labs suggests that the recent lull in crypto hacks may be due to various factors. The U.S. Treasury's sanctioning of the cryptocurrency mixer Tornado Cash and the arrest and charges against Avraham Eisenberg, the exploiter of Mango Markets, may have deterred potential hackers. However, there is no single obvious explanation for the decline.
In January, Certik, a blockchain security firm, stated that it does not expect a respite in exploits, flash loans, or exit scams. The firm predicts that hackers will continue to target bridges in 2023. In 2022, six out of the ten largest exploits involved bridges, resulting in approximately $1.4 billion in stolen funds.
Overall, while the first quarter of 2023 showed a decline in crypto hacks, experts warn against assuming a long-term decrease in such incidents. The crypto community is urged to remain vigilant and take appropriate security measures to protect their assets. History has shown that a few major attacks can quickly reverse the current trend, emphasizing the importance of continuous awareness and proactive security measures.
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