Last year, blockchain security was significantly developed, marked by a considerable $50 billion decrease in lost cryptocurrency assets. The decline reflects an evolution toward more robust security measures and the maturity of the decentralized finance (defi) network.
According to the year-end report released by the cryptocurrency security company Hacken, the money lost to scams and hacks decreased significantly, totaling $1.9 billion. This decline differs from prior years, suggesting that the sector has made significant progress in fortifying security procedures and effectively addressing vulnerabilities.
Among the various blockchain platforms, BNB Chain experienced the highest number of attacks, totaling 214, followed by ethereum with 178 attacks. The vast majority of hacks on ethereum and BNB Chain (97 and 148, respectively) were labeled as rug pulls.
The analysis also explores how blockchain vulnerabilities are distributed geographically, identifying notable hotspots in areas with a lot of fintech activity. With 15 attacks, the United States led the world, followed by Singapore with 13 and the United Kingdom with five. In comparison to other countries, China had a comparatively lower average stolen value per hack at $5 million, even though it had the fourth-highest number of incidents at four. The UK stood at $40 million with the United States and Singapore at $10 million and $23 million, respectively.
The decrease in losses compared to the prior year does not imply a downturn in the threat environment. Conversely, a 14% rise in attacks was observed, indicating a changing and growing number of attacks. These assaults range in complexity from attacks on flash loans to complex access control breaches, showing how attackers are always improving their methods for taking advantage of blockchain technologies and defi.
The Multichain Bridge was the target of the biggest theft last year, costing $231 million. However, a significant 20% of the stolen assets were recovered, largely because of the swift action of law enforcement agencies, select hackers’ collaboration and quick-response teams.
The report highlights the necessity for bug bounty schemes and thorough audit coverage to detect and fix vulnerabilities early. The lack of security audits or their insignificance keeps many projects insecure even with these precautions in place, according to the report. This emphasizes the necessity of proactive security auditing that is customized for the blockchain code that has been deployed.
Hacken also noted that a strong security framework must include secure wallet technologies and continuous tracking tools, which help identify and mitigate possible threats early on. This improves the overall security of blockchain platforms and protects user assets.
With the industry continuing to innovate and implement new solutions, the report projects higher vulnerabilities in 2024. To strengthen industry-wide defense measures, it emphasizes the significance of encouraging industry collaboration, building a proactive security structure and placing a strong emphasis on access control.
The investing public will be pleased by the findings of this report suggesting that industry actors such as Marathon Digital Holdings Inc. (NASDAQ: MARA) have taken efforts to continually improve their cybersecurity systems to thwart hackers.
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- Source: https://www.cryptocurrencywire.com/report-shows-crypto-hacks-reduced-by-98-in-2023/
