Major Crypto Hacks in 2023
In 2023, the crypto industry grappled with cyberattacks and hacks, causing financial losses. Despite December hacks, the overall impact was less severe than the record-breaking $4 billion stolen in 2022. Analysts predict a substantial reduction in total losses for 2023.
TRM Labs’ Analysis
According to a December report from blockchain intelligence company TRM Labs, the crypto sector faced persistent challenges as hackers exploited weak security measures. However, TRM Labs anticipated a more optimistic outcome for 2023, with projections indicating significantly lower losses compared to 2022. Nonetheless, the year saw substantial financial setbacks, with TRM Labs estimating losses amounting to $1.7 billion.
Overview of Noteworthy Hacks
Let’s delve into some of the most prominent crypto exploits and hacks of 2023, each highlighting the vulnerabilities and security lapses within the affected projects.
Mixin: $200 Million
In September, hackers targeted the Hong Kong-based cross-chain asset transfer and decentralized exchange platform Mixin, absconding with a staggering $200 million in cryptocurrencies. The incident revealed vulnerabilities in Mixin’s design, leading to criticisms regarding its claimed level of decentralization.
Euler Finance: $197 Million
March witnessed a flash loan attack on DeFi lender Euler Finance, resulting in the theft of $197 million in various cryptocurrencies, including DAI, Wrapped Bitcoin (WBTC), Staked Ethereum (stETH), and Circle’s USD stablecoin USDC. Notably, the majority of stolen funds were later returned to users by the hacker.
Poloniex: $126 Million
In November, Poloniex, the crypto exchange founded by Justin Sun, fell victim to hackers who made off with over $126 million in a diverse range of cryptocurrencies. The exchange took measures to freeze a portion of the assets linked to the hackers’ addresses, asserting that its operational revenue could cover the incurred losses.
Atomic Wallet: $100 Million
In June, North Korean hackers targeted the self-custodial, decentralized Atomic Wallet, initially siphoning off $35 million in digital tokens. Subsequently, the amount surged nearly threefold as funds continued to be drained from wallets. Blockchain firm Elliptic collaborated with investigators and exchanges worldwide to trace and freeze the stolen funds.
Curve: $60 Million
Hackers exploited vulnerabilities in the decentralized finance (DeFi) protocol Curve in July, resulting in a $60 million loss. The decentralized exchange, running on Ethereum, successfully recovered 73% of the stolen funds by offering a reward to the attacker.
Kyber: $48 Million
In November, DeFi market maker KyberSwap experienced an attack that saw hackers pilfering nearly $50 million in cryptocurrencies. The incident took a peculiar turn as the exploiter issued an open, on-chain letter demanding complete control of the protocol and the removal of Kyber’s leadership.
Stake: $40 Million
September witnessed a $40 million hack on Stake, a popular gambling site associated with rapper Drake. Hackers drained crypto funds from the platform’s wallet, taking $16 million in Ethereum, Tether, USD Coin, and DAI, followed by an additional $25 million in Binance Smart Chain and Polygon. The FBI later attributed the attack to the Lazarus Group, a North Korea-linked hacker organization.