In 2023, cryptocurrency platforms experienced approximately $1.7 billion in theft due to hacker attacks, a significant drop of 54.3% from the previous year, a report released by Chainalysis on Wednesday said.
The crypto industry continues to grapple with cyber attacks, which remain a major concern and contribute to the skepticism of regulators worldwide towards cryptocurrencies.
Despite the reduction in total stolen funds, the frequency of hacking incidents rose to 231 in the last year, up from 219 in 2022, as reported by Chainalysis.
Notably, the number of hacks attributed to organizations linked to North Korea reached a record high of 20 last year. These groups were responsible for stealing just over $1 billion, a decrease from the $1.7 billion estimated in 2022.
The impact of the hacking incidents on cryptocurrency platforms, as reported in the Chainalysis report affects the crypto industry in many ways. The most direct impact is the financial loss to the platforms and their users. With $1.7 billion stolen in 2023, both investors and platforms suffered significant financial damage. This can erode trust in these platforms and lead to a loss of user base and investment.
Additionally, such high-profile thefts can shake the confidence of both current and potential investors in the cryptocurrency market. This can lead to a decrease in market participation, reduced trading volumes, and potentially a drop in the value of cryptocurrencies.
This affects the general public’s perception of cryptocurrency as a safe investment can be negatively affected. This can slow down the adoption of cryptocurrencies and hinder the growth of the industry.
Overall, while the decrease in the total amount stolen in 2023 compared to the previous year is a positive sign, the increase in the number of hacking incidents indicates a continuing challenge for the cryptocurrency industry in terms of security and trust.
