Despite witnessing a notable plunge in cryptocurrency breaches in Q1 2023, industry insiders caution against complacency. Emphasizing the likeness to the sequence of events from the previous year, experts indicate that this hiatus might not signify a lasting trend but merely a temporary lull.
The Historical Highs and Present Lows of Crypto Hacks
Cryptocurrency hacking made unprecedented headlines in 2022. A staggering $3.8 billion was stolen, primarily from decentralized finance (DeFi) protocols and sources linked to North Korea, per a Chainalysis report published in 2023.
Yet, the dawn of 2023 heralded a stark contrast. Data released by TRM Labs on May 21 suggest that Q1 of 2023 witnessed fewer cryptocurrency hacks than any quarter of the preceding year.
Interestingly, the frequency of attacks dipped. Thankfully, the average theft size plummeted by an impressive 65% when juxtaposed with the corresponding period of 2022.
Cryptocurrency breaches in Q1 2023 averaged around USD 10.5 million. That a drastic drop from nearly USD 30 million in Q1 2022, despite a similar incident count, at about 40.
Historical Trends Warn Against Complacency
Yet, the cryptocurrency community is cautioned to remain alert. TRM Labs draws attention to the sharp dip in Q3 2022, preceding a record surge in hacks during Q4. This dramatic twist culminated in making 2022 a record-breaking year for crypto theft.
Likewise, experts posit that the current slowdown in breaches is likely a brief respite rather than an enduring pattern shift. Moreover, they underscore that a handful of large-scale attacks could swiftly overturn this apparent tranquillity.
Possible Explanations and Predictions
While there is no definitive reasoning behind this sudden lull, TRM Labs postulates some potential deterrents for would-be cybercriminals. For example, the sanctioning of cryptocurrency mixer Tornado Cash by the U.S. Treasury and the arrest and subsequent charges against Mango Markets exploiter Avraham Eisenberg could potentially have dissuaded potential hackers.
However, blockchain security firm Certik did not foresee a drop in exploits, flash loans, or exit scams. Instead, they highlighted the probability of hackers increasing their focus on targeting bridges in 2023, considering these accounted for six of the top ten largest exploits in 2022, leading to thefts of around $1.4 billion.
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