In 2023, PeckShield successfully recovered $674 million in stolen cryptocurrency from over 600 hacks.
PeckShield’s data on crypto losses from hacks and scams in 2023, totaling more than $4 billion, shows a significant recovery compared to 2022.
PeckShield’s Jan. 29 report highlights that the $2.61 billion in losses for 2023 was notably lower than the $3.6 billion in losses in 2022.
PeckShield, noting more than $674 million (25%) recovery of stolen crypto in 2023, emphasizes the increased success compared to the estimated $133 million recovered in 2022.
The recovery was facilitated by improved negotiations with hackers and the growing adoption of bug bounty programs, along with collaboration with centralized exchanges, Tether, and law enforcement agencies.
“Engaging in active negotiations with hackers can lead to the return of stolen funds. […] Implementing bug bounty programs or on-chain sleuthing to identify hackers and vulnerabilities in the system can enhance security.”
Aside from recovery, PeckShield sheds light on flash loans, decentralized finance (DeFi), and the disparity in volume between hacks and scams.
In 2023, 40% of the hacks involved flash loan attacks, and while DeFi security has improved, it remains a major target for hackers and scammers, constituting 67% of losses.
Ronghui Gu, the co-founder of CertiK, declared 2023 as a positive year for blockchain security, praising the growth of bounty platforms and proactive security measures.
PeckShield’s data indicates that 67% of losses in 2023 were linked to DeFi, with 33% occurring in centralized finance, 58% due to hacks, and 42% resulting from scams.
Notably, hackers and scammers are diversifying the cryptocurrencies they target, moving beyond a focus on just one or two assets.
From 2018 to 2021, Bitcoin was the top crypto by trading volume for illicit transactions.
Although Bitcoin dominated the illicit transaction volume from 2018 to 2021, stablecoins have been gaining more share in 2022 and 2023.
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