1. In 2023, crypto security incidents decreased, yet Ethereum endured as the primary target, losing $500 million to hacks.
2. DeFi breaches took the lead, accounting for 31% of total losses and 60% of incidents, while centralized exchanges followed at 20% of losses and 15% of incidents.
3. Despite its resurgence in popularity, NFTs encountered 12% of incidents and 5% of losses, often plagued by minting fraud, counterfeit auctions, and intellectual property violations.
4. Ethereum faced the largest blow, tallying $487 million in losses, closely trailed by Polygon, which suffered $123 million in losses.
SlowMist, a prominent blockchain security company, recently published its comprehensive 2023 report on crypto industry security. Notably, it highlighted a decline in security incidents compared to the preceding year, totaling 464 events resulting in $2.48 billion in losses, down from $3.77 billion in 2022.
Ethereum, holding the second-highest market cap in cryptocurrencies, bore the brunt, facing a loss of $487 million. Meanwhile, the decentralized finance (DeFi) sector emerged as the primary target, grappling with issues like smart contract vulnerabilities and flash loan exploits.
Centralized exchanges weren't spared either, contributing to $487 million in losses, while the Non-Fungible Token (NFT) sector saw 54 attacks, resulting in $122 million in losses. The popularity of Ethereum and Polygon in DeFi and NFT applications made them prime targets.
Exit scams and account compromise incidents remained prevalent, illustrating persistent security concerns within the crypto landscape. Specifically, exit scams accounted for 23.7% of all occurrences (110 instances) and 3.3% of all losses ($83 million), while account compromise via phishing or social engineering represented 18.5% of events (86 instances) and 19.6% of losses ($487 million).
Despite innovations within the crypto space, SlowMist foresees an escalation in security complexities as the industry continues to grow.
However, it's crucial to note that while this information strives for accuracy, the volatile nature of cryptocurrencies demands thorough research and caution in financial decisions.
#ETH #Ethereum2024 #EthereumRally #Crypto2024 #cryptocurrency