PeckShield Reports $2.61 Billion Loss in Crypto Industry Due to Hacks and Scams

The cryptocurrency industry suffered losses amounting to $2.61 billion in 2023 due to hacking incidents and fraudulent activities, according to a report by PeckShield.

#PeckShieldAlert 2023 saw 600+ major hacks in the crypto space, resulting in ~$2.61B in losses, with $674.9M recovered.
$1.51B lost to hacks (excluding #Multichain unauthorized withdrawals) & $1.1B to scams. This marks a 27.78% decrease from 2022. #DeFi protocols remained prime… pic.twitter.com/G7PIU3WyrX

— PeckShieldAlert (@PeckShieldAlert) January 29, 2024

Analysts calculated that projects managed to recover $674.9 million (25.9%).

Of the $2.61 billion, $1.5 billion was attributed to hacks, with the remaining amount linked to fraud-related incidents.

Compared to 2022, the total figure decreased by 27.78%.

The largest losses were recorded in November ($364.4 million) and September ($339.2 million).

Malicious actors continued to focus on DeFi protocols, accounting for approximately 67% of the total damage. 33% of the losses were attributed to CEX.

Hackers executed 40% of attacks using flash loans.

Among the over 600 incidents, the most significant losses were faced by:

• Mixin ($200 million);
• Euler Finance ($197 million);
• Poloniex ($125 million);
• HECO Bridge and HTX ($111 million);
• Orbit Chain ($81.5 million).

Earlier, analysts at Immunefi estimated the industry’s losses from hackers and scammers in 2023 at $1.8 billion.

Previously, TRM Labs listed factors that may have contributed to the reduction in hacking losses last year.