In the first quarter of 2023, there was a sharp decrease in the amount of damage from hacks of DeFi protocols, which is associated with sanctions against the Ethereum mixer Tornado Cash and lawsuits against hackers. This conclusion was reached in the analytical firm TRM Labs.
🆕: Crypto hacks are down (for now)
Following a record-setting 2022, which saw USD 3.7 billion in stolen crypto, new research from TRM Labs shows crypto hacks are down 70% in Q1 2023. What’s driving the trend and how long will last 👉 https://t.co/exxBwJKzjP
— TRM Labs (@trmlabs) May 23, 2023
According to experts, these factors “difficulty money laundering.”
In January-March, in the course of 40 attacks, the attackers managed to steal $400 million.
The indicator decreased by 70% compared to the same period in 2022 and was generally lower than each of the quarters of the last year. The number of attacks has not changed, but the average damage has decreased from $30 million to $10.5 million.
According to TRM Labs, the measures taken by regulators against attackers contributed to a decrease in the number of hacks in the past quarter.
In October 2022, a group led by Abraham Eisenberg attacked Mango Markets and withdrew digital assets worth about $116 million.
In December, U.S. Attorneys arrested Eisenberg on charges of commodity and price fraud. In January 2023, claims against the trader were made by CFTC And SEC.
“Prosecution may have indicated to would-be perpetrators that even the victim’s consent not to pursue legal action may not provide protection,” experts explained.
Another factor, according to TRM Labs, which influenced the reduction of damage, was the increase in the number of hackers returning illegally obtained funds. Experts recalled the transfer of $200 million to Euler Finance and $850,000 to Tender.fi.
Also, as the reasons for the decrease in the number of attacks, experts cited the introduction by exchanges AML-standards and sophisticated blockchain analytics tools.
TRM Labs allowed the dynamics to worsen in the following quarters due to the potential for major incidents. Experts found that ten hacks accounted for 75% of total damage in 2022.
Recall that CertiK experts estimated the losses of blockchain projects as a result of hacks and fraud cases at $320 million.
Previously, Moody’s analysts called measures against the organizer of the attack on Mango Markets a boon for DeFi.
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