PeckShield, a blockchain security firm, has reported that $2.61 billion was lost to cyber theft in 2023, a 27.78% decrease from 2022 where over $3.6 billion was lost to cyber theft.
Additionally, over $674 million was recovered from hacks, 25% of the stolen crypto. This recovery rate has improved significantly from 2022, when only $133 million was recovered.
Crypto firms that were victims of these hacks were able to negotiate with hackers and launch bug bounty programs. Undoubtedly, these were major moves that contributed to the recovery of these funds. Collaborating with exchanges, Tether, and law enforcement also helped.
PeckShield's data shows that 40% of 2023 hacks involved flash loans. However, DeFi remained a major target for these bad actors, with 67% of losses occurring in DeFi and 33% in centralized finance.
Malicious actors are now targeting diverse cryptocurrencies, including stablecoins. From 2018 to 2021, Bitcoin was the main cryptocurrency used by criminals for illicit transactions, but in 2022 and 2023, stablecoins became more common in illicit transactions.