Crypto hack losses dip by 51% in 2023: Certik

Crypto security in focus: The DeFi sector lost over $1.8 billion in security breaches and hacks in 2023, as detailed in CertiK's annual ‘Hack3d: The Web3 Security Report 2023.’ While still a substantial figure, this amount reflects a notable 51 per cent decrease compared to the $3.7 billion lost in 2022 due to various security breaches and hacks.

CertiK's analysis indicated that the third quarter of 2023 was particularly vulnerable, accounting for over $686 million in losses. Notably, compromises of private keys became the costliest form of attack, leading to losses surpassing $880 million in 47 separate incidents throughout the year.

Total crypto scams based on blockchain classifications | Image credit: Certik

When it comes to specific blockchains, Ethereum witnessed the highest losses, tallying $686 million across 224 incidents, translating to an average loss of $3 million per incident. In contrast, BNB Chain reported 387 security incidents but incurred significantly lower losses, amounting to $134 million.

Moreover, the report underscored challenges associated with cross-chain interoperability, revealing that breaches affecting multiple blockchains contributed to nearly $800 million in losses.

Ronghui Gu, co-founder, Certik, expressed cautious optimism regarding the observed trends in 2023, characterising it as a ‘positive development’ for blockchain security. Gu attributed the 51 per cent decline in losses partially to the broader market downturn, which impacted token and treasury valuations. However, he emphasised that sustained security improvements during market upswings would signify the Web3 industry's maturing approach to security.