Crypto hacks will decrease significantly in 2023, but is it temporary?

The fourth quarter of 2022 was another record period for numbers hacks that was carried out in the crypto industry. However, the first quarter of 2023 shows a completely different picture, reports an analysis company TRM Labs. The amount stolen via crypto hacks in the past period is lower than any quarter of 2022. Still, this may only be a temporary development, says TRM Labs, and users should stay alert.

Crypto hacks are declining

Unfortunately, 2022 was a good year for crypto hackers. A whopping $3.8 billion was stolen last year. The damage was especially great in the decentralized finance (DeFi) sector. Many of these attacks are linked to North Korean parties. This is according to a report from Chainalysis earlier this year.

This year looks very different so far. In the past quarter, stolen crypto capital was lower than in any quarter of 2022. The average size of hacks took a hit in the first quarter. The amount decreased to $10.5 million from the $30 million in the first quarter of 2022, even though the number of hacks was about the same.

Source: TRM LabsAccording to the experts, this is no reason to hang the garlands. TRM Labs can’t pinpoint a clear reason why the total amount stolen dropped so sharply this year. The company therefore recommends that users remain very alert. The current dip may be “temporary rather than a long-term trend.” A few large-scale attacks can easily turn the tide and push the counter back up significantly.

Blockchain analysis firm PeckShield also noticed earlier this year that much less is being stolen via crypto hacks and exploits. The company reported that total losses from such parties dropped by 93% from 121 million in January 2022 to 8.8 million in January 2023. So for now, that trend will continue this year, but TRM Labs does not believe it will continue.

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