Report Reveals $1.18 Billion Lost in Crypto Attacks This Year
Written with artificial intelligence.
A report from security firm Blockaid indicates that from January 5 to August 5, 2023, 60 tracked crypto attacks resulted in losses totaling $1.18 billion. Only $9.8 million was returned to victims, with the remaining funds largely unrecovered despite various measures in place.
Overview of Crypto Attacks in 2023
According to a recent report by security company Blockaid, there have been significant financial losses due to crypto attacks this year. Between January 5 and August 5, 2023, 60 attacks were tracked, leading to a staggering total loss of approximately $1.18 billion.
Recovery Efforts and Results
Out of the total losses, only $9.8 million, which represents just 0.8%, was successfully returned to victims. Additionally, $81.4 million was frozen, but a substantial $1.04 billion remains unrecovered. Notably, measures such as blacklisting by stablecoin issuers and trading platforms did not contribute to recovering any funds. Among 16 incidents where blacklisting could have been applied, it was never utilized.
Role of Governance and Validators
The report highlights that 99% of the recovered or frozen funds, totaling $91.2 million, were a result of governance and verification measures at the protocol or chain level. For instance, following the KelpDAO incident, the Arbitrum Security Council was able to freeze $71 million. The median time for stolen funds to start being transferred after an attack was recorded at 17 minutes.