Tick Tock on the Crypto Clock: Criminals Raking in $289K Every Hour in 2023

<p>Cryptocurrencies
have evolved from a fringe concept to a mainstream investment vehicle,
attracting not just individual investors but also the attention of
cybercriminals. A recent report by The Money Mongers sheds light on the
staggering amount of money lost to crypto hacks over the past decade,
highlighting the risks that come with the rewards of investing in digital
assets. In 2023 alone, criminals are illicitly earning $289,000 every hour.</p><p>The Decade-Long Tide of
Crypto Hacks</p><p>Since the
inception of <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/">cryptocurrencies</a>, they have been lauded as a revolutionary
financial tool. However, this digital frontier has morphed into a hotspot for hackers, leading to widespread cyber vulnerabilities. According to the “<a href="https://themoneymongers.com/crypto/biggest-crypto-heists-thefts/">Global
Crypto Heist Report</a>,” $1.89 billion was lost in 297 crypto hack attacks in
2023 alone. This translates to a loss of $289,000 every hour for the current
year.</p><p>In 2022,
the crypto world witnessed an unprecedented level of hacking activity. A record
$3.5 billion was stolen in 284 separate incidents. This alarming trend has been
on the rise since 2011, with a total of $12.36 billion lost in 1,207 incidents.
The report also revealed that 192 crypto exchanges have been hacked since 2011,
resulting in a total loss of $3.8 billion.</p><p>The year
2018 was particularly devastating for crypto exchanges, which lost a collective
$1.1 billion to hacking and theft incidents. Decentralized finance (DeFi)
platforms have not been spared either, with 93 and 76 hacks in 2022 and 2023
respectively, leading to a collective loss of $1.12 billion.</p><p>When it
comes to the types of cryptocurrencies most affected, Bitcoin (BTC) and Ethereum (ETH) top
the list. Since 2011, a total of 1,454,762 BTC and 1,175,082 ETH have been lost
to hacks. These losses amount to $40.27 billion and $1.93 billion at current
market prices, respectively.</p><p>"The
research findings underscore the urgent need for fortified security in the
crypto domain. As crypto matures as an asset class, its rising value has
inevitably attracted more hacking attempts, especially targeting BTC &amp; ETH,”
said Sudhir Khatwani, the CEO of The Money Mongers.</p><p>The Top 10 High-Stakes Heists</p><p>Two common hacks
have also been identified: contract vulnerability and flash loan attacks. These
have led to a cumulative loss of $2.75 billion since 2011. The report also
listed the top 10 biggest crypto hacks, which account for a cumulative loss of
$4.26 billion. These range from gaming-focused <a href="https://www.financemagnates.com/terms/b/blockchain/">blockchain</a> networks like Ronin
Network to major crypto exchanges like Coincheck and Mt Gox.</p><p>The report
details the top 10 biggest crypto hacks, <a href="https://www.financemagnates.com/cryptocurrency/news/ronin-network-suffers-615-million-crypto-heist/" target="_blank" rel="follow">with Ronin Network leading the list
with a loss of $625 million</a>. Poly Network follows it <a href="https://www.financemagnates.com/cryptocurrency/news/largest-defi-hack-611-million-stolen-from-poly-network/" target="_blank" rel="follow">at $610 million</a> and
Binance Smart Chain at $566 million. Interestingly, some hackers have returned
some of the stolen funds, as was the case with Poly Network, which later offered the
hacker a $500,000 bounty and a job offer for identifying the flaw in their
system.</p><p>“While the
potential of cryptocurrencies remains vast, these security breaches erode
public trust. It's imperative for the industry to prioritize robust security
measures to safeguard both investors' assets and the integrity of the crypto
ecosystem,” added Khatwani.</p><p>The report
additionally highlights the top 10 biggest crypto exchange hacks, which have resulted
in a cumulative loss of $2.61 billion. Coincheck, Mt Gox, and FTX top this
list, with losses of $534 million, $473 million, <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">and $415 million</a>,
respectively.</p><p>“The Global
Crypto Heist Report” compiled this data through multiple sources, including
news articles, individual reports, and third-party security research firms. The
report focuses solely on clear exploits by hackers and does not include rug
pulls, exit scams, or employee theft of funds. The data only displays the total
amount lost to hacks before any recovery attempts, so the actual lost amount
for certain entries may vary.</p>

This article was written by Damian Chmiel at www.financemagnates.com.