Over $1.8 billion in digital assets were lost across 751 security incidents in 2023. While the amount is still huge, it is 51% lower than in 2022, when losses to hacks and other incidents reached $3.7 billion. The data comes from blockchain security firm CertiK’s annual report titled “Hack3d: The Web3 Security Report 2023.” On Jan. 3, the security company compiled a document highlighting the state of Web3 security over the last year. Within the report, the company noted that the third quarter of 2023 recorded the most losses at over $686 million. Furthermore, private key compromises continued to be the most costly attack vector. In 2023, over $880 million were lost to 47 incidents where private keys were compromised. When it comes to blockchains, the Ethereum network recorded the most losses. According to CertiK’s report, Ethereum saw $686 million in losses across 224 incidents, with an average of $3 million per incident. On the other hand, BNB Chain recorded 387 security incidents, but the total losses were only $134 million — much lower than Ethereum’s figure. In addition, cross-chain interoperability remains a pain point for crypto. The security report highlighted that losses were almost $800 million in security breaches affecting multiple blockchains.
While these are the largest cryptocurrency hacks that have happened in 2023, OODA has been compiling a comprehensive Web3 incident database from the start of the cryptocurrency age based on our research to categorize what compromises are taking place as well as document the root causes that plague Cryptos, DeFi, NFTs, and Web3 in general. Tracking root causes provides comprehensive insights into how innovators can create robust cyber risk management approaches and reduce the potential for consequential attacks. You can access the OODA comprehensive Crypto Incident tracker here.
