The latest CertiK report shows that the number of security incidents in the cryptocurrency market decreased in 2023.
CertiK suggests cryptocurrency market is becoming a safer place
CertiK recorded a total of 751 security incidents in the cryptocurrency market, with a total loss of $1.84 billion. While this is a shocking number, it is a 51% decrease compared to 2022. Each incident resulted in an average loss of $2.45 million, with the ten largest attacks netting criminals $1.11 billion. Interestingly, the security firm also found that the average loss per incident was just $101,132.
November saw the highest loss amount of $363,367,327, stemming from 45 incidents. Q3 saw a loss of $686,558,472, stemming from 183 hacks, scams, and exploits.
It is worth noting that as many as six of the ten most costly hacks of 2023 resulted from a private key compromise.
For example, an attack on Multichain in July caused a loss of $125 million. Despite the assurances of decentralization, it was revealed that the CEO of Multichain had exclusive control over the computational servers and private keys. The vulnerability came to light with the arrest of the CEO.
How to avoid being targeted by criminals?
As a result, CertiK has advised users to implement certain private key management practices. Suggestions include using multi-signature wallets, storing backup copies of private keys offline in secure locations such as vaults, conducting regular audits, and monitoring key usage to detect unauthorized access.
It turns out that the most attacks were on Ethereum, which is due to the strong position of this blockchain on the market. The report shows that as much as USD 686 million in cryptocurrencies were stolen from this network, which translates into 224 incidents.
BNB Chain was successfully attacked 387 times with losses amounting to $134 million.
You can learn more about safe investing in the market from our article.
