In short: According to a report from TRMLabs, the total value stolen through hacks and exploits has gone down by 70% year-over-year since Q1 2022. The decline is attributed to improved cybersecurity measures and increased attention from law enforcement officials. In addition, victims of attacks have increasingly been able to recover part of their stolen funds. However, TRMLabs warns that the decline may be temporary and urges crypto developers to stay vigilant.
Our quick analysis:
Last year, the crypto world was hit hard by a barrage of high-profile attacks that left many investors reeling. From the Phantom wallets to smart contracts, everything was fair game for the hackers. But it seems that the tables are turning, according to a new report from cybersecurity researchers at TRMLabs.
The report reveals that the total value stolen via exploits and hacks has decreased by a whopping 70% year-over-year since Q1 2022. Even though the $600 million Ronin bridge attack took place in Q1 2022, the data still holds up when the rest of the year is taken into account. In fact, Q1 2023 saw less value stolen than any quarter of the previous year.
The victims of these attacks also seem to be recovering more of the stolen funds. On average, they are recouping about a third of what they lost, which is already a significant increase from the previous year.
So what caused this decline in successful hacks? The researchers at TRMLabs suspect that increased regulatory scrutiny may be part of the reason for the change. Even if a particular exploit didn't violate hacking laws, regulators are taking action against certain individuals for other reasons. For example, Avraham Eisenberg's "profitable trading strategy" got him into hot water with the SEC, which accused him of manipulating securities.
In addition, illegal exploits have become more difficult as well. Tornado Cash, the most well-known instrument for laundering dirty crypto, has been blacklisted in the U.S., making it harder for cybercriminals to cash out the proceeds of their attacks.
However, this lull in attacks may prove to be temporary. The researchers are urging crypto developers to remain vigilant and not let their guard down.
Although the hackers might be down, they are certainly not out for the count. So, keep your wits about you, my crypto-loving friends, and stay safe out there!
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
Last year, the crypto world was hit hard by a barrage of high-profile attacks that left many investors reeling. From the Phantom wallets to smart contracts, everything was fair game for the hackers. But it seems that the tables are turning, according to a new report from cybersecurity researchers at TRMLabs.
The report reveals that the total value stolen via exploits and hacks has decreased by a whopping 70% year-over-year since Q1 2022. Even though the $600 million Ronin bridge attack took place in Q1 2022, the data still holds up when the rest of the year is taken into account. In fact, Q1 2023 saw less value stolen than any quarter of the previous year.
The victims of these attacks also seem to be recovering more of the stolen funds. On average, they are recouping about a third of what they lost, which is already a significant increase from the previous year.
So what caused this decline in successful hacks? The researchers at TRMLabs suspect that increased regulatory scrutiny may be part of the reason for the change. Even if a particular exploit didn't violate hacking laws, regulators are taking action against certain individuals for other reasons. For example, Avraham Eisenberg's "profitable trading strategy" got him into hot water with the SEC, which accused him of manipulating securities.
In addition, illegal exploits have become more difficult as well. Tornado Cash, the most well-known instrument for laundering dirty crypto, has been blacklisted in the U.S., making it harder for cybercriminals to cash out the proceeds of their attacks.
However, this lull in attacks may prove to be temporary. The researchers are urging crypto developers to remain vigilant and not let their guard down.
Although the hackers might be down, they are certainly not out for the count. So, keep your wits about you, my crypto-loving friends, and stay safe out there!
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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