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.
“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.”
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.
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.
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.
“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.”
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.
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.
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.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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🔔 Subscribe to our YouTube channel for more!🔔
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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