CertiK Report: Losses Due to Crypto Hacks Down 51% in 2023

Table of Contents

• Web3 Security in 2023
• Q3 Accounts for Most Gruesome Losses
• Highest Losses in Private Key Compromises
• 2024 Did Not Start Well

Blockchain security firm CertiK’s annual report reveals positive news for the industry. In its “Hack3d” report, CertiK found that crypto losses due to hacks were down 51% in 2023 compared to 2022. 

Data from CertiK reveals over $1.8 billion in crypto assets were lost in 751 security breaches in 2023. The massive amount lost is a whopping 51% lower than in 2022. 

Web3 Security in 2023

While security incidents continue to unsettle the crypto industry, 2023 showed a marked decline in losses due to hacking. Blockchain security firm CertiK published its annual “Hack3d: The Web3 Security Report 2023,” which shows that losses due to hacking decreased by 51% in 2023 compared to 2022.

According to the report, $1,840,879,064 was lost across 751 hacks, scams, and exploits in 2023.

CertiK explained that in 2022, a total of $3.7 billion was lost, with an average of $2.45 million per incident. 

Q3 Accounts for Most Gruesome Losses

CertiK reported that Q3 saw the most losses, totalling $686,558,472 across 183 security incidents. November recorded the highest losses with $363,367,327 across 45 hacks, scams, and exploits.

Source: CertiK

Highest Losses in Private Key Compromises

CertiK said private key compromises represented the costliest attack vector, accounting for nearly 50% of the financial losses. $880,892,924 was lost across just 47 incidents. 

The BNB Chain suffered the highest number of compromises, witnessing 387 exploits. Ethereum came in second with 224 incidents but accounted for only $686 million in losses.

Source: CertiK

2024 Did Not Start Well

The report further revealed that cross-chain interoperability remains an issue in the crypto sector. Losses reached almost $800 million and affected multiple blockchains. 

According to a recent report by Scam Sniffer, phishing activities gained momentum in 2023, costing 320,000 users almost $300 million. The Web3 security company revealed that phishing scams became more sophisticated over the year, which allowed scammers to bypass security measures and drain funds from over 320,000 users. 

2024 did not get off to a promising start in terms of exploits. The cross-chain project, Orbit Chain, fell victim to a massive exploit totalling $81 million just hours before the new year. Radiant Capital was the second major scam victim in a matter of days after hackers stole 1,900 ETH, worth around $4.5 million. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.