In 2023, a successful recovery leads to the retrieval of stolen cryptocurrency valued at $674M.

Blockchain security company PeckShield has released data summarizing the losses from hacks and scams in 2023. The report reveals that a total of $2.61 billion was lost during the year, excluding multichain losses. This represents a decrease of 27.78% compared to 2022, when global cyber thefts amounted to approximately $3.6 billion. PeckShield also highlighted that over $674 million was recovered from more than 600 large-scale hacks, accounting for 25% of the stolen cryptocurrency. This marks a significant increase from 2022, when only around $133 million was recovered. The recovery of funds was attributed to more active negotiations with hackers and the rise of bug bounty programs. PeckShield also emphasized the importance of collaboration with centralized exchanges, Tether, and law enforcement to freeze funds when they are detected. The report also revealed that 40% of the hacks in 2023 involved flash loan attacks. Despite improvements in decentralized finance (DeFi) security, PeckShield noted that DeFi remained a prime target for hacks and scams. The company highlighted the growth of bounty platforms and proactive security measures as positive developments for blockchain security in 2023. Additionally, the report showed that the amount of stolen funds that were laundered decreased by 25% compared to the previous year, with 2023 recording $342 million in laundered stolen funds compared to $460 million in 2022. PeckShield emphasized that 67% of the losses in 2023 occurred in DeFi, while 33% were in centralized finance. It also noted that 58% of the losses were due to hacks, and 42% were because of scams. The report also highlighted a shift in the crypto targeted by malicious actors, with Bitcoin dominating illicit transaction trading volume from 2018 to 2021, but stablecoins taking a larger share in 2022 and 2023.