Crypto Attacks Declining in Q1 is Only a “Temporary Reprieve,” According to a Blockchain Company

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Last Updated on May 22, 2023 by Bitfinsider

Despite a dramatic drop in crypto attacks during the first quarter of 2023, the crypto community is being warned to remain vigilant, with one business warning it is likely a “temporary reprieve, rather than a long-term trend.”

According to a report from Chainalysis earlier this year, last year was the greatest year in the history of cryptocurrency hacking, with an estimated $3.8 billion stolen, mostly through decentralized finance (DeFi) protocols and attackers connected to North Korea.

However, the first quarter of 2023 seems to have seen a sharp decline in this number. TRM Labs published a report on May 21 stating that the quantity of cryptocurrency that was stolen in Q1 2023 “was less than any other quarter in 2022.”

It was also reported that the average hack size decreased by over 65% from the same time last year.

History implies that despite the decline, crypto users shouldn’t become comfortable. Prior to “a record-setting number of hacks” in Q4 that “turned 2022 into a record year,” the third quarter of 2022 saw a dramatic decline in cryptocurrency hacks, according to TRM Labs.

It stated, “Unfortunately, this slowdown is most likely a temporary reprieve rather than a long-term trend,” adding that just a few significant attacks might swing the balance once more.

Although “there is no one obvious explanation for the lull,” TRM Labs speculated that the U.S. Treasury’s punishment of cryptocurrency mixer Tornado Cash and the arrest and subsequent charges brought against Mango Markets exploiter Avraham Eisenberg may have deterred would-be hackers.

It was reported in January by blockchain security company Certik that it does not “anticipate a respite in exploits, flash loans, or exit scams.”

It stated that there would probably be “further attempts from hackers targeting bridges in 2023.” Six of the top 10 exploits in 2022, which resulted in the theft of around $1.4 billion, involved such bridges.

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