The fund recovery rate surged from 2% in 2022 to an impressive 10% in the latest figures.
Ethereum faced substantial losses, losing about $1.35 billion in 170 incidents.
In a recent report released by security app De.Fi,
researchers revealed that cryptocurrency users lost nearly $2 billion to scams,
rug pulls, and hacks in 2023. Although this represented a significant reduction
from the previous year, it underscores the ongoing vulnerability of the
industry to security risks.
Market Decline and Improved Awareness Contribute to Lowered
Crypto Risks
The decrease in losses is largely attributed to the
implementation of enhanced security protocols, increased awareness within the
community, and an overall decline in market activity. Notably, this reduction
becomes even more substantial when factoring in the $40 billion lost to the
collapses of the stablecoin issuer Terraform Labs, the crypto lender Celsius, and the
FTX exchange.
This positive trend coincides with a bear market where
major alternative tokens experienced significant slumps before recovering in
recent months amid more bullish conditions. Additionally, the recovery rate of
funds saw a significant improvement, rising to around 10%, up from a mere 2% in
2022, according to De.Fi.
Breakdown by Chain 2023, Source: De.Fi
“This amount, though dispersed across various incidents,
underscores the persistent vulnerabilities and challenges within the DeFi
ecosystem,” De.Fi wrote in its report, which the firm shared with TechCrunch.
“2023 stood as a testament to both the ongoing vulnerabilities and the strides
made in addressing them, even as interest in the space was relatively muted by
the ongoing bear market in the first half of the year.”
Top 10 Funds Lost, Source: De.Fi
Ethereum, the largest blockchain by active users and value
locked, bore the highest losses, with approximately $1.35 billion erased in an
estimated 170 incidents. This highlights Ethereum's attractiveness to malicious
actors due to its extensive ecosystem and high-profile projects, with the most
substantial exploit being the $230 million attack on the cross-chain platform
Multichain in July.
Type of Exploit 2023, Source: De.Fi
BNB Chain also emerged as a target, witnessing a loss of
$110.12 million across 213 incidents. The zkSync Era network lost $5.2 million
in two incidents, while Solana experienced a loss of $1 million in a single
attack.
🚨 ~$2B WAS STOLEN in 2023 🚨
Since 2020, the hackers tend to grab significantly less in various incidents
The biggest hack - Multichain, with $231M stolen due to unauthorized access to the system, according to @DeFi - security leader by @TechCrunchhttps://t.co/0IMARz9Sjn
Losses on centralized platforms, including exchanges and
trading platforms, totaled around $256 million across seven cases. The largest
of these incidents occurred in November when an attack on Poloniex resulted in
a net loss of $122 million.
Access control exploits proved to be the most damaging, with
attackers exploiting weaknesses in how permissions and access rights are
managed within smart contracts or platforms. Such exploits, totaling more than
$852 million in losses from 29 instances, often grant unauthorized access to
funds or critical functionalities.
While the cryptocurrency
industry has made strides in bolstering security measures, the report
highlights the persistent challenges and underscores the importance of ongoing
vigilance and innovation to safeguard users and their assets.
Vulnerabilities Exposed: Implications for Traditional Cold
Wallet Security
Ledger confirmed that hackers inserted malicious code into
the GitHub library for Connect Kit, a widely used javascript library enabling
decentralized finance (DeFi) protocols to connect with hardware wallets. This
has put several DeFi platforms, including Sushi, Lido, Metamask, and Coinbase,
at risk.
While Ledger swiftly removed the malicious code, users
remain at risk. All protocols using Connect Kit must manually update their
versions to address the security threat. Ledger's CEO emphasized the need for
continuous security improvement, acknowledging the incident as a reminder of
the dynamic nature of security.
The attack questions the previously perceived safety of cold
wallets, typically considered secure due to their offline nature. Ledger is
actively cooperating with authorities, vowing to support affected users and aid
in the investigation to apprehend the hacker and recover stolen assets.
In a recent report released by security app De.Fi,
researchers revealed that cryptocurrency users lost nearly $2 billion to scams,
rug pulls, and hacks in 2023. Although this represented a significant reduction
from the previous year, it underscores the ongoing vulnerability of the
industry to security risks.
Market Decline and Improved Awareness Contribute to Lowered
Crypto Risks
The decrease in losses is largely attributed to the
implementation of enhanced security protocols, increased awareness within the
community, and an overall decline in market activity. Notably, this reduction
becomes even more substantial when factoring in the $40 billion lost to the
collapses of the stablecoin issuer Terraform Labs, the crypto lender Celsius, and the
FTX exchange.
This positive trend coincides with a bear market where
major alternative tokens experienced significant slumps before recovering in
recent months amid more bullish conditions. Additionally, the recovery rate of
funds saw a significant improvement, rising to around 10%, up from a mere 2% in
2022, according to De.Fi.
Breakdown by Chain 2023, Source: De.Fi
“This amount, though dispersed across various incidents,
underscores the persistent vulnerabilities and challenges within the DeFi
ecosystem,” De.Fi wrote in its report, which the firm shared with TechCrunch.
“2023 stood as a testament to both the ongoing vulnerabilities and the strides
made in addressing them, even as interest in the space was relatively muted by
the ongoing bear market in the first half of the year.”
Top 10 Funds Lost, Source: De.Fi
Ethereum, the largest blockchain by active users and value
locked, bore the highest losses, with approximately $1.35 billion erased in an
estimated 170 incidents. This highlights Ethereum's attractiveness to malicious
actors due to its extensive ecosystem and high-profile projects, with the most
substantial exploit being the $230 million attack on the cross-chain platform
Multichain in July.
Type of Exploit 2023, Source: De.Fi
BNB Chain also emerged as a target, witnessing a loss of
$110.12 million across 213 incidents. The zkSync Era network lost $5.2 million
in two incidents, while Solana experienced a loss of $1 million in a single
attack.
🚨 ~$2B WAS STOLEN in 2023 🚨
Since 2020, the hackers tend to grab significantly less in various incidents
The biggest hack - Multichain, with $231M stolen due to unauthorized access to the system, according to @DeFi - security leader by @TechCrunchhttps://t.co/0IMARz9Sjn
Losses on centralized platforms, including exchanges and
trading platforms, totaled around $256 million across seven cases. The largest
of these incidents occurred in November when an attack on Poloniex resulted in
a net loss of $122 million.
Access control exploits proved to be the most damaging, with
attackers exploiting weaknesses in how permissions and access rights are
managed within smart contracts or platforms. Such exploits, totaling more than
$852 million in losses from 29 instances, often grant unauthorized access to
funds or critical functionalities.
While the cryptocurrency
industry has made strides in bolstering security measures, the report
highlights the persistent challenges and underscores the importance of ongoing
vigilance and innovation to safeguard users and their assets.
Vulnerabilities Exposed: Implications for Traditional Cold
Wallet Security
Ledger confirmed that hackers inserted malicious code into
the GitHub library for Connect Kit, a widely used javascript library enabling
decentralized finance (DeFi) protocols to connect with hardware wallets. This
has put several DeFi platforms, including Sushi, Lido, Metamask, and Coinbase,
at risk.
While Ledger swiftly removed the malicious code, users
remain at risk. All protocols using Connect Kit must manually update their
versions to address the security threat. Ledger's CEO emphasized the need for
continuous security improvement, acknowledging the incident as a reminder of
the dynamic nature of security.
The attack questions the previously perceived safety of cold
wallets, typically considered secure due to their offline nature. Ledger is
actively cooperating with authorities, vowing to support affected users and aid
in the investigation to apprehend the hacker and recover stolen assets.
Tareq is a financial writer with 15 years of experience covering global markets. His work spans technical analysis, forex broker reviews, and market sentiment, with a focus on topics relevant to retail traders. He joined Finance Magnates in 2023.
At Finance Magnates, he serves as News Editor, covering retail forex and CFD brokers, cryptocurrency exchanges, fintech firms, and regulatory developments shaping the trading industry. He holds an Honours degree in Information Technology from Anfell College, London.
Education:
Honours degree Information Technology, Anfell College, London
Four Moves in Six Weeks: How Payward Is Remaking Kraken as a Regulated Infrastructure Platform
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Today’s Thursday, the 11th of June 2026, and these are our main stories: Spain moves to classify certain futures products as CFDs for retail investors, IUX reports more than $1.5 trillion in monthly trading volume, and a closer look at why crypto still struggles to reach the mainstream.
Today’s Thursday, the 11th of June 2026, and these are our main stories: Spain moves to classify certain futures products as CFDs for retail investors, IUX reports more than $1.5 trillion in monthly trading volume, and a closer look at why crypto still struggles to reach the mainstream.
Today’s Thursday, the 11th of June 2026, and these are our main stories: Spain moves to classify certain futures products as CFDs for retail investors, IUX reports more than $1.5 trillion in monthly trading volume, and a closer look at why crypto still struggles to reach the mainstream.
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In this video, we review @AxiOfficialChannel , a multi-asset broker offering access to forex and CFD markets through MetaTrader 4, MetaTrader 5, the Axi Trading App, and copy trading solutions.
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Watch the full video for a clear, fact-based overview of Axi’s products, trading tools, and overall broker offering.
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In this video, we review @AxiOfficialChannel , a multi-asset broker offering access to forex and CFD markets through MetaTrader 4, MetaTrader 5, the Axi Trading App, and copy trading solutions.
We examine the broker’s regulatory framework, platform offering, market coverage, and customer support structure. We also explore key features such as available trading instruments, swap-free account options, funding considerations, and multilingual support.
Watch the full video for a clear, fact-based overview of Axi’s products, trading tools, and overall broker offering.
#Axi #ForexBroker #CFDTrading #FinanceMagnates #Trading #BrokerReview #OnlineTrading
In this video, we review @AxiOfficialChannel , a multi-asset broker offering access to forex and CFD markets through MetaTrader 4, MetaTrader 5, the Axi Trading App, and copy trading solutions.
We examine the broker’s regulatory framework, platform offering, market coverage, and customer support structure. We also explore key features such as available trading instruments, swap-free account options, funding considerations, and multilingual support.
Watch the full video for a clear, fact-based overview of Axi’s products, trading tools, and overall broker offering.
#Axi #ForexBroker #CFDTrading #FinanceMagnates #Trading #BrokerReview #OnlineTrading
In this video, we review @AxiOfficialChannel , a multi-asset broker offering access to forex and CFD markets through MetaTrader 4, MetaTrader 5, the Axi Trading App, and copy trading solutions.
We examine the broker’s regulatory framework, platform offering, market coverage, and customer support structure. We also explore key features such as available trading instruments, swap-free account options, funding considerations, and multilingual support.
Watch the full video for a clear, fact-based overview of Axi’s products, trading tools, and overall broker offering.
#Axi #ForexBroker #CFDTrading #FinanceMagnates #Trading #BrokerReview #OnlineTrading
In this video, we review @AxiOfficialChannel , a multi-asset broker offering access to forex and CFD markets through MetaTrader 4, MetaTrader 5, the Axi Trading App, and copy trading solutions.
We examine the broker’s regulatory framework, platform offering, market coverage, and customer support structure. We also explore key features such as available trading instruments, swap-free account options, funding considerations, and multilingual support.
Watch the full video for a clear, fact-based overview of Axi’s products, trading tools, and overall broker offering.
#Axi #ForexBroker #CFDTrading #FinanceMagnates #Trading #BrokerReview #OnlineTrading
In this video, we review @AxiOfficialChannel , a multi-asset broker offering access to forex and CFD markets through MetaTrader 4, MetaTrader 5, the Axi Trading App, and copy trading solutions.
We examine the broker’s regulatory framework, platform offering, market coverage, and customer support structure. We also explore key features such as available trading instruments, swap-free account options, funding considerations, and multilingual support.
Watch the full video for a clear, fact-based overview of Axi’s products, trading tools, and overall broker offering.
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This panel will explore how firms are moving beyond CFDs into crypto, perpetuals, equities, and multi‑asset offerings, and the challenges they face across regulation, technology, liquidity, and risk management. It examines what is driving the shift, what it takes to execute it successfully, and how brokers can position themselves for the next phase of growth.
This panel will explore how firms are moving beyond CFDs into crypto, perpetuals, equities, and multi‑asset offerings, and the challenges they face across regulation, technology, liquidity, and risk management. It examines what is driving the shift, what it takes to execute it successfully, and how brokers can position themselves for the next phase of growth.
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Beyond Reach? Retail Investor Acquisition Across APAC
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This session gathers CMOs, heads of acquisition, and IB relationship managers to examine what actually works, channel by channel, market by market.
Attendees will walk away with:
A clear view of which channels deliver funded, retained traders across Singapore, Japan, and Southeast Asia
Understanding of how to structure IB partnerships for LTV, not first deposit
Insight into what localization actually costs beyond the translation budget
Perspective on how ad restrictions, crypto promotion limits, and bundling rules differ across APAC jurisdictions
A read on whether the super-app model changes acquisition economics for retail investing platforms
APAC accounts for two-thirds of global retail trading traffic, but with differences of language, regulation, and trader profile, the region's growth is ag great as complexity.
This session gathers CMOs, heads of acquisition, and IB relationship managers to examine what actually works, channel by channel, market by market.
Attendees will walk away with:
A clear view of which channels deliver funded, retained traders across Singapore, Japan, and Southeast Asia
Understanding of how to structure IB partnerships for LTV, not first deposit
Insight into what localization actually costs beyond the translation budget
Perspective on how ad restrictions, crypto promotion limits, and bundling rules differ across APAC jurisdictions
A read on whether the super-app model changes acquisition economics for retail investing platforms
APAC accounts for two-thirds of global retail trading traffic, but with differences of language, regulation, and trader profile, the region's growth is ag great as complexity.
This session gathers CMOs, heads of acquisition, and IB relationship managers to examine what actually works, channel by channel, market by market.
Attendees will walk away with:
A clear view of which channels deliver funded, retained traders across Singapore, Japan, and Southeast Asia
Understanding of how to structure IB partnerships for LTV, not first deposit
Insight into what localization actually costs beyond the translation budget
Perspective on how ad restrictions, crypto promotion limits, and bundling rules differ across APAC jurisdictions
A read on whether the super-app model changes acquisition economics for retail investing platforms
APAC accounts for two-thirds of global retail trading traffic, but with differences of language, regulation, and trader profile, the region's growth is ag great as complexity.
This session gathers CMOs, heads of acquisition, and IB relationship managers to examine what actually works, channel by channel, market by market.
Attendees will walk away with:
A clear view of which channels deliver funded, retained traders across Singapore, Japan, and Southeast Asia
Understanding of how to structure IB partnerships for LTV, not first deposit
Insight into what localization actually costs beyond the translation budget
Perspective on how ad restrictions, crypto promotion limits, and bundling rules differ across APAC jurisdictions
A read on whether the super-app model changes acquisition economics for retail investing platforms
APAC accounts for two-thirds of global retail trading traffic, but with differences of language, regulation, and trader profile, the region's growth is ag great as complexity.
This session gathers CMOs, heads of acquisition, and IB relationship managers to examine what actually works, channel by channel, market by market.
Attendees will walk away with:
A clear view of which channels deliver funded, retained traders across Singapore, Japan, and Southeast Asia
Understanding of how to structure IB partnerships for LTV, not first deposit
Insight into what localization actually costs beyond the translation budget
Perspective on how ad restrictions, crypto promotion limits, and bundling rules differ across APAC jurisdictions
A read on whether the super-app model changes acquisition economics for retail investing platforms
APAC accounts for two-thirds of global retail trading traffic, but with differences of language, regulation, and trader profile, the region's growth is ag great as complexity.
This session gathers CMOs, heads of acquisition, and IB relationship managers to examine what actually works, channel by channel, market by market.
Attendees will walk away with:
A clear view of which channels deliver funded, retained traders across Singapore, Japan, and Southeast Asia
Understanding of how to structure IB partnerships for LTV, not first deposit
Insight into what localization actually costs beyond the translation budget
Perspective on how ad restrictions, crypto promotion limits, and bundling rules differ across APAC jurisdictions
A read on whether the super-app model changes acquisition economics for retail investing platforms