In 2023, the total value of stolen cryptocurrency funds witnessed a significant decrease of 54.3%, amounting to $1.7 billion. This is in stark contrast to the previous year when over $3.7 billion were pilfered through hacks and theft.
A report published by blockchain intelligence firm Chainalysis reveals that these crime estimates are based on on-chain intelligence, and do not account for instances where off-chain bookkeeping could have been fraudulent. "In 2022, 43% of the illicit transaction volume came from activity from sanctioned entities such as crypto exchange Garantex," the document states. It also highlights that these findings are subject to change as Chainalysis identifies new addresses associated with illicit activity. For instance, in 2021, the initial finding was $14 billion in illicit activity, but after identifying new scams, this figure was revised upwards to $18 billion.
The report further reveals that Decentralized Finance (DeFi) technologies have been the primary target of hacking over the last three years. In 2021 and 2022, approximately $2.5 billion and $3.1 billion respectively were stolen through these platforms. However, in 2023, there was a notable decline of 63.7% in the total amount stolen via DeFi accounts. The document attributes this drop to improved security measures and a general decrease in hacking attempts on DeFi accounts.
According to Chainalysis' findings, illicit cryptocurrency activity has constituted less than 1% of total volume over the past four years. Interestingly, while North Korea increased its hacking activities on crypto platforms compared to previous years, it stole less overall funds than before. In 2022, it is estimated that North Korea stole approximately $1.7 billion worth of cryptocurrency; however, this figure dropped to an estimated $1 billion in 2023.
"Hacks into DeFi platforms were the largest portion of the funds stolen by North Korea, with this amount being close to $428.8 million," the document concludes.
