Blockchain Security Report Reveals Significant Crypto Losses in 2023

In the first half of 2023, there was a lot of turmoil in the cryptocurrency sector due to alarming findings made by the blockchain security company Beosin. The web3 space has seen unprecedented $655.61 million in losses as a result of cyber attempts, phishing schemes, and rug pulls during this time, according to their recently revealed data. In this article, we examine the report’s specifics and examine how these losses differ from those in prior years.

A Disturbing Overview of Losses

The analysis by Beosin illuminates the magnitude of the market’s financial destruction during the first half of 2023. The most infamous offenders, responsible for $471.43 million in lost money, were hacking assaults. Rug pulls and phishing scams were in second and third, causing losses of $75.87 million and $108 million, respectively.

Although the losses are frightening, the study does have one positive aspect. According to Beosin’s research, there have been less hacking-related losses this year than in years past. The whole cost of assaults in 2022 was astonishing, totaling $1.91 billion in the first half and $1.69 billion in the second. However, its value decreased to a significantly lower level of $470 millions in the first half of 2023.

Notable Incidents and Recovery Efforts

Losses from hacking attacks often fell between $1 million and $10 million. There was one unique example involving more than $100 million, though. There were seven instances of losses between $10 million and $100 million overall, and 23 instances of losses between $1 million and $10 million.

Beosin’s research shows that asset recovery efforts have improved despite the magnitude of the losses. A total of $215 million, or 45.5% of the stolen property, has already been found. This is a substantial improvement over the prior year, when just 8% of stolen property was successfully recovered.

Stolen Assets and Mixers

The research also highlights the nefarious routes that stolen funds have traveled. Mixers, a common technique to conceal the sources of illegal cash, were used to store $113 million in stolen assets. Tornado Cash earned $45.38 million from the mixers, while the other mixers shared $68.14 million.