$674M worth of stolen cryptocurrency successfully retrieved in 2023

Article Update: January 30, 8:50 AM UTC: PeckShield, a blockchain security firm, has released data summarizing the losses from hacks and scams in 2023. According to their report, a total of $2.61 billion was lost during the year, excluding multichain losses.
PeckShield’s report, published on January 29, indicates a 27.78% decrease compared to 2022, when global cyber thefts amounted to approximately $3.6 billion.
The security firm also highlighted that they were able to recover over $674 million from more than 600 large-scale hacks they monitored, representing 25% of the stolen cryptocurrency.
In a statement to Cointelegraph, the PeckShield team stated that the amount recovered saw a significant increase compared to 2022, when only around $133 million was recovered from hacks. The security team credited this improvement to more active negotiations with hackers and the growing popularity of bug bounty programs.
PeckShield also emphasized that collaborating with centralized exchanges, Tether, and law enforcement to freeze funds whenever they are detected can also contribute to fund recovery.
Apart from the funds recovered from hacks, PeckShield highlighted several other data points, including flash loans, decentralized finance (DeFi), and the volume difference between hacks and scams. The data revealed that 40% of the hacks in 2023 involved flash loan attacks.
While some argue that improvements in DeFi security have resulted in a decrease in the amount of stolen cryptocurrency in 2023, PeckShield pointed out that DeFi remained a prime target for hacks and scams. CertiK co-founder Ronghui Gu stated on January 4 that 2023 was a “positive development” in terms of blockchain security. Gu highlighted the growth of bounty platforms and proactive security measures as promising signs for the year.
Furthermore, PeckShield shared that the amount of stolen funds laundered in 2023 decreased by 25% compared to the previous year. In 2022, $460 million in laundered stolen funds was recorded, whereas in 2023, that number dropped to $342 million.
Despite this decrease, PeckShield emphasized that 67% of the losses in 2023 occurred in DeFi, while 33% were in centralized finance. They also highlighted that 58% of the losses were due to hacks, while 42% were a result of scams.
Malicious actors have also expanded their target cryptocurrencies for illicit activities. From 2018 to 2021, Bitcoin (BTC) dominated the trading volume for illicit transactions. However, in 2022 and 2023, there was a shift as stablecoins started to make up a larger portion of the illicit transaction volume.
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