• Wednesday, February 21, 2024
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BusinessDay

$2bn worth of crypto stolen in 2023 – Report

The rise in the adoption of cryptocurrencies in developing economies

Decentralized Finance (DeFi), an emerging financial technology firm has revealed that hackers stole approximately, $2 billion in cryptocurrencies through multiple cyberattacks and thefts in 2023.

The firm said in a report that this year’s data is a testament to vulnerabilities and efforts being made to address them.

However, around $3.8 billion was stolen in crypto in 2022 which represents a decline from the amount stolen in 2023.

According to the report, top crypto heists recorded this year include the hack against Euler Finance, in which hackers stole almost $200 million; as well as major hacks against Multichain ($126 million), BonqDAO ($120 million), Poloniex ($114 million), and Atomic Wallet ($100 million), among hundreds of others.

“This amount, though dispersed across various incidents, underscores the persistent vulnerabilities and challenges within the DeFi ecosystem. 2023 stood as a testament to both the ongoing vulnerabilities and the strides made in addressing them, even as interest in the space was relatively muted by the ongoing bear market in the first half of the year,” the report said.

A recent report by TRM Labs, a blockchain intelligence company, revealed that $1.7 billion had been stolen in crypto as of mid-December 2023.

It noted that even with any additional hacks in December, this year will likely finish with significantly lower totals than 2022. “Last year’s tally of almost $4 billion from crypto hacks included several large thefts, such as a $600 million-plus attack on a blockchain network called Ronin Bridge connected to the Axie Infinity game.”

It added that the top 10 hacks had netted criminals almost 70 percent of all stolen funds this year. Attacks against the decentralised lending app Euler Finance, Multichain bridge connecting different blockchains, and Poloniex crypto exchange netted $100 million each, for example.

“Infrasturctural attacks such as private-key theft that gives hackers access to a crypto project’s servers or software to steal funds or manipulate trades contributed to nearly 60 percent of the total stolen this year.”