$674M crypto recovered of $2.6B stolen

$674M crypto recovered of $2.

• PeckShield reported $2.61 billion recovery in 2023 credits negotiations and bug bounty programs.
• Global cyber theft sees 27.78% decrease in 2023 losses.
• Although some argue that improvements in DeFi security reduced the number of cryptocurrency thefts in 2023, DeFi is still a popular target.

PeckShield, a blockchain security company, has published data summarizing the financial impacts of scams and hacks in 2023. The corporation claims that, excluding multichain losses, losses amounted to $2.61 billion, with a recovery of over $674 million.

Crypto recovery: $674M recouped in 2023

PeckShield, in its report published on January 29, disclosed some startling data that illustrates the resilience and recovery of the cryptocurrency industry.

In 2023, there was a notable reduction in global cyber thefts, with losses, excluding multichain incidents, totalling $2.61 billion. This represents a 27.78% decrease compared to the nearly $3.6 billion in losses recorded in 2022. The decline serves as evidence of the growing effectiveness of security measures in the cryptocurrency space.

The company reported that, among the 600-plus large-scale thefts they examined, approximately $674 million, constituting 25% of the pilfered cryptocurrency, has been successfully recovered. When comparing this retrieval figure to the 2022 total of just over $133 million, a significant improvement is evident.

The firm credits the improvement to increased engagement in negotiations with hackers and the emergence of bug bounty programs. PeckShield also highlighted collaborative efforts with centralized exchanges, and law enforcement to freeze funds upon detection.

Also read: Cryptocurrency heists witness 55% drop to $1.7 billion in 2023

Various aspects of crypto

PeckShield’s data illuminated various aspects of the cryptocurrency, including flash loans, decentralized finance (DeFi), and the differentiation between scams and hacks, alongside recovery numbers. Notably, flash loan attacks were implicated in 40% of cyber incidents in 2023.

Moreover, despite claims that advancements in DeFi security led to a reduction in crypto thefts in 2023, PeckShield pointed out that DeFi remained a popular target for scams and hacks.

According to PeckShield, 67% of the losses in 2023 occurred in DeFi, while 33% occurred in centralized finance. It further emphasized that 42% of the losses came from scams, and 58% came from cyberattacks.

On January 4, CertiK’s Co-founder, Ronghui Gu, declared that blockchain security would experience “positive development.” The CEO expressed optimism for the year, highlighting the growth of incentive programs and the implementation of robust security measures.

Also read: Hackers never seem to be satisfied with cryptocurrency theft!