Web3 Cyber Crimes Persist in 2023, Costing $1.8 Billion, Despite 52% Drop in Losses
Summary:
In 2023, Web3 hackers and scammers stole a total of $1.8 billion, according to Immunefi. The majority of the losses were due to hacking, with $1.3 billion lost from seemingly decentralized protocols. The Lazarus Group, linked to North Korea, was responsible for approximately 17% of the losses. The worst hit was the trading platform Mixin Network, with over $200 million in losses. Despite this, 2023's losses represent a 52% decline from the previous year.
The year 2023 witnessed Web3 wrongdoers hijacking a massive total of $1.8 billion, as stated in a Dec. 28 publication by blockchain protection firm, Immunefi. Based on the report, 17% of these losses were linked to the Lazarus Group, a cyber gang believed to have connections with North Korea. The most dreadful cyber-attack of the year, causing a loss surpassing $200 million to cryptocurrency entrepreneurs, was targeted at the peer-to-peer exchange platform, Mixin Network. Euler Finance's exploit that cost a colossal $197 million falls second in line, followed by the $126 million breach of the cross-chain bridge protocol, Multichain.
As per the same publication, law enforcement agencies identified losses amounting to $309 million related to the Lazarus Group, a digital criminal ring allegedly connected to the Democratic People’s Republic of Korea (North Korea). This estimate includes revenue lost to attacks on Atomic Wallet ($100 million), Coinex ($70 million), Alphapo ($60 million), Stake, Coinspaid, and some more.
Also important to mention is the fact that the bulk of losses were perpetrated through hacking rather than deceptive practices. Distinct fraud schemes such as rug pulls accounted for $103 million of total loss, while a whopping over $1.6 billion was swindled via cyber breaches and exploits. An estimated $1.3 billion loss was suffered by decentralized protocol claims, leaving only $409 million traced to centralized finance (CeFi) cryptocurrency protocols.
Chainanalysis, another blockchain security agency, noticed over $3.8 billion in embezzled funds in the previous year. However, it seems that such illegal activities have decreased slightly by 52%, with total loss rounding up to $1.8 billion for 2023.
Published At
12/28/2023 7:28:52 PM
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