Hackers have executed a series of well-coordinated attacks on cryptocurrency platforms throughout January 2024, resulting in the theft of approximately $182.54 million worth of digital assets. This surge in hacking incidents represents a staggering year-over-year increase of 771.39% compared to the same period in January 2023 when losses amounted to a comparatively modest $20.95 million.
The most prominent among these cyberattacks was the breach of Chris Larsen’s #Ripple account. On January 31st, hackers successfully infiltrated Larsen’s account, making off with a staggering 213 million XRP tokens, equivalent to approximately $112.5 million at the time of the attack. This incident has been classified as the largest cryptocurrency hack recorded in the first month of the year.
While the year 2023 saw an overall decline in the total losses incurred due to cryptocurrency hacking, there was a notable uptick in the number of individual hacking instances. According to a recent report by blockchain analytics company Chainalysis, the total losses from cryptocurrency hacks dropped from a record-breaking $3.7 billion in 2022 to approximately $1.7 billion in 2023, marking a significant 54% decrease.
Decentralized finance (DeFi) hacking, which was a major contributor to previous years’ losses, saw a substantial reduction. The theft of funds through DeFi protocols decreased by approximately 64% to $1.1 billion in 2023, following the explosive growth in 2021 and 2022 when losses exceeded $3 billion each year.
Record Levels of Stolen Assets for Three Consecutive Years
Despite the decrease in total losses, the number of individual hacking events actually increased from 219 in 2022 to 231 in 2023. This troubling trend, as highlighted by Chainalysis, underscores the growing threat posed by hackers within the cryptocurrency ecosystem.
Mar Gimenez-Aguilar, Lead Security Architect and Researcher at Halborn, expressed deep concern about the rising frequency and severity of cyber assaults. The data from security app De.Fi, which reported that the total amount of stolen assets reached approximately $2 billion at the end of December, aligns with the figures presented in the Chainalysis report.
