Crypto hacks decreased by 70% in Q1 2023, research reveals

A recent report by TRM Labs shows that the number of cryptocurrency attacks dropped by 70% during Q1 2023 compared to the same period in 2022. Nearly 40 attacks resulted in a total theft of about $400 million, the lowest quarterly amount in over a year.

Average hack size drops to $10.5 million in Q1 2023

TRM Lab is a blockchain intelligence company. It stated on May 22 that in Q1 2023, over 40 cryptocurrency attacks resulted in the theft of about $400 million. This amount is a 70% reduction from Q1 2022.

In addition, Q1 2023 saw fewer funds stolen through crypto hacks than any quarter in 2022.

Despite the same number of occurrences, the average hack size decreased in Q1 2023 from roughly $30 million in the comparable quarter of 2022 to $10.5 million.

Over half of all cash stolen up to this point has been returned to victims in Q1 2023.

The crypto hack respite may not be a long-term trend

Most of the funds taken from crypto platforms and users result from a small number of large attacks, which can lead to a significant month-to-month variation in the total amount taken.

According to a TRM Labs analysis of 2022 hacks and exploits, the ten biggest hacks in 2022 accounted for around 75% of the total sum stolen in 2022. 

In addition to harming the cryptocurrency ecosystem’s reputation and trust, hacks and vulnerabilities can cause significant losses for traders, investors, DeFi projects, and exchanges.