De.Fi uncovers $2 billion in cryptocurrency scams in 2023: Unveiling the positive, negative, and unsightly aspects.

Crypto Losses Drop to $2 Billion in 2023, Highlighting Industry Resilience

In 2023, the cryptocurrency industry saw a significant decrease in losses, with the total amount dropping to $2 billion from $4.2 billion in 2022. This improvement is attributed to various factors, including enhanced security protocols, increased vigilance within the crypto community, and reduced market activity. However, it is important to note that major entities such as Terraform Labs, Celsius, and FTX still suffered losses amounting to $40 billion.

One platform that was particularly vulnerable to attacks was Ethereum, which experienced losses of around $1.35 billion in nearly 170 incidents. The report underscores that Ethereum’s extensive ecosystem and high-profile projects make it an attractive target for malicious actors. For instance, Multichain, a cross-chain platform, fell victim to a breach that resulted in a loss of $230 million in July.

Other platforms also faced losses. The BNB Chain reported losses of $110.12 million across 213 incidents, while zkSync Era and Solana experienced losses of $5.2 million and $1 million, respectively.

Centralized platforms, including exchanges, reported significant losses of approximately $256 million in seven notable incidents. One notable event was the breach at Poloniex, owned by Justin Sun, which led to a loss of $122 million in November.

The report highlights the most prevalent methods of exploitation. Access control breaches, which exploit vulnerabilities in smart contracts or platform access, accounted for over $852 million in losses across 29 cases. Flash-loan attacks and exit scams also caused significant damages, resulting in losses of $275 million across 36 cases and $136 million in 263 incidents, respectively.

Overall, De.Fi’s comprehensive report on the 2023 crypto landscape demonstrates the industry’s ongoing efforts to combat security threats. While progress has been made, the evolving nature of these threats emphasizes the need for continuous vigilance and proactive measures. By prioritizing security in decentralized finance, the industry can guide future enhancements and mitigate risks.

Source: [Coinpedia’s yearly crypto hack report]