Despite a significant drop in cryptocurrency hacks in the first quarter of 2023, the cryptocurrency community is still being urged not to let their guard down with one firm warning that this is likely to be a “temporary reprieve rather than a long-term trend. "
According to a Chainalysis report earlier this year, last year saw the highest number of cryptocurrency hacks ever recorded, with an estimated $3.8 billion stolen, mostly from decentralized finance (DeFi) protocols and attackers linked to North Korea. .
However, this figure appears to have decreased significantly in the first quarter of 2023. According to a May 21 report from TRM Labs, the amount stolen via cryptocurrency hacks in the first quarter of 2023 is “lower than any other quarter in 2022.” I t's Also worth noting that the average size of hacks has dropped by nearly 65 percent compared to the same period last year. "Average hack size also took a hit in the first quarter of 2023—from nearly $30 million in the same quarter in 2022 to $10.5 Million, Despite a Similar Number of Incidents (Around 40). at cryptocurrency hacks fell sharply in the third quars of 2022, just ahead of a "record numberer of hacks” in the fourth quarter, “making 2022 a record year.”
"Unfortunately, this slowdown is likely to be a temporary reprieve rather than a long-term trend," it noted, adding that only a few large attacks would be enough to turn things around again. While it was noted that "there is no apparent explanation for the lull," TRM Labs said the US Treasury Department's sanctions on cryptocurrency mixer Tornado Cash and the arrest and charges of Mango Markets exploiter Avraham Eisenberg may have deterred potential hacker. In January, blockchain security firm Certik told Coin telegraph that it “anticipates no exploits, flash loans or exit scams.”
It noted the possibility of "further attempts by hackers to target bridges in 2023." Such bridges accounted for six of the top 10 exploits in 2022, with an estimated $1.4 billion stolen.
