Crypto Hacks Falling In The First Quarter Is A Temporary Reprieve

Digital Peso Crypto

The crypto community is currently being urged to not give up despite a major decline in hacks under the first quarter of 2023- with a firm warning that this was simply a temporary reprieve- and not a long-term trend. 2022 was one of the biggest years in terms of crypto hacking, with around $3.8 billion stolen, primarily from the protocols of DeFi, and attackers lining in from North Korea, according to a Chainalysis report that came in early 2023.

However, as it turns out, the number then seemingly dropped in the first quarter of 2023. According to a report published on 21st May by TRM Labs, the amount that was stolen through the hacks in Q1 2023 was quite less than any other quarter in 2022. 

It Would Not Do Well To Be Complacent Before A Crypto Hack Hits

It was further noted that the average size of a hack had dropped by nearly 65% when compared to the prior year period. Despite this impressive drop in crypto hacks, history has suggested that users shouldn’t be getting overly complacent with this minute success. Interestingly, crypto hacks had fallen significantly in Q3 2022, just before a record-setting number of hacks in Q4 managed to turn 2022 into a record year. TRM Labs further noted that this slowdown was simply the result of a temporary reprieve rather than a long-term inflection. They added that a few large-scale hacks would be enough to rip the scales once more. 

Back in January, Certik, a blockchain security firm informed Cointelegraph that it didn’t anticipate a respite in exit scams, flash loans, or exploits. It also noted the likelihood of further attempts from hackers that had been targeting the bridges in 2023. Such bridges had previously accounted for six of the 10 largest crypto exploits in 2022, which saw around $1.4 billion being stolen.