Crypto Hacks Falling In Q1 Are Just A ‘Temporary Reprieve’ – Blockchain Business

The crypto community is being urged not to let their guard down despite a significant drop in crypto hacks in the first quarter of 2023 – with one stark warning that it is most likely a “temporary reprieve, rather than a long-term trend.”

According to a report from Chainalysis earlier this year, 2022 was the biggest year for crypto hacking in history, with an estimated $3.8 billion stolen, mostly from decentralized finance (DeFi) protocols and attackers linked to North Korea.

However, this number appears to have decreased dramatically in the first quarter of 2023. According to a May 21 TRM Labs report, the amount stolen via crypto hacks in the first quarter of 2023 was “less than any other quarter in 2022.”

It was also noted that the average hack size dropped by almost 65% compared to the same period last year.

“The average hack size also took a hit in the first quarter of 2023 — to $10.5 million from nearly $30 million in the same quarter of 2022, even though the number of incidents was similar (about 40).”

Despite the drop, history suggests crypto users shouldn’t get complacent. Crypto hacks dropped significantly in Q3 2022, just ahead of “a record number of hacks” in Q4 that “turned 2022 into a record year,” noted TRM Labs.

“Unfortunately, this slowdown is most likely a temporary delay rather than a long-term trend,” it noted, adding that just a few large-scale attacks could be enough to tip the scales again.

While it was noted that “there is no clear explanation for the silence,” TRM Labs suggested that cryptocurrency mixer Tornado Cash be sanctioned by the US Treasury Department, and the arrest and indictment of Mango Markets exploiter Avraham Eisenberg would potential hackers.

­­Related: Developers must stop crypto hackers or they will be regulated in 2023

In January, blockchain security firm Certik told Cointelegraph that it does not “anticipate a delay in exploits, flash loans or exit scams.”

It pointed to the likelihood of “further attempts by hackers targeting bridges in 2023.” Such bridges accounted for six of the top 10 exploits in 2022, stealing about $1.4 billion.

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