- $674 million was successfully recovered from crypto hacks in 2023, representing a 25% recovery rate and substantial increase over previous years
- Total crypto thefts remained high at $2.61 billion in 2023, though this was a 27.8% decrease from 2022
- Negotiations with hackers, bug bounties, exchange collaboration, and security improvements contributed to increased recovery of stolen funds
The year 2023 saw significant progress in recovering funds lost to crypto hacks and scams. According to blockchain security firm PeckShield, $674 million was successfully recovered from over 600 large-scale hacks last year. This represents a 25% recovery rate and marks a substantial increase compared to previous years.
The Scale of Crypto Thefts in 2023
While the recovery numbers are encouraging, crypto thefts remain a serious issue. PeckShield reports that a total of $2.61 billion was stolen from crypto platforms and protocols in 2023, excluding losses on Multichain. This represents a 27.8% decrease compared to the $3.6 billion stolen in 2022. However, the cumulative losses are still staggering.
Negotiations and Improved Security Boost Recoveries
According to PeckShield, the increased recovery of stolen funds in 2023 can be attributed to more active negotiations with hackers, the rise of bug bounty programs, collaboration with exchanges to freeze funds, and overall security improvements. For example, engaging hackers in negotiations and implementing bug bounties enhances transparency and surfaces vulnerabilities before they can be exploited.
The Evolution of Crypto Hacking Targets
While DeFi protocols remain prime targets, accounting for 67% of 2023 losses, hackers are diversifying the cryptocurrencies they target. Stablecoins now make up a larger share of illicit transaction volume compared to Bitcoin. This shift demonstrates malicious actors are adjusting their strategies in response to changing market dynamics.
Looking Ahead
2023 marks progress in blockchain security, but continued vigilance and proactive measures will be needed going forward. As hackers specialize and evolve, the crypto sector must double down on transparency, collaboration with law enforcement, and incentivizing ethical hacking. With greater cooperation and preventative action, the community can continue taking strides to thwart crypto crimes.
