Despite a significant drop in crypto hacks during Q1 of 2023, the crypto community is being warned against complacency, with one firm stating that it is most likely a temporary relief rather than a long-term trend.
Last year saw a record-breaking $3.8 billion stolen through crypto hacks, primarily from DeFi protocols and North Korea-linked attackers.
However, the amount stolen through crypto hacks in Q1 2023 was less than any other quarter in 2022, with the average hack size dropping nearly 65% compared to the prior year period.
While there is no clear explanation for the lull, TRM Labs suggested that the sanctioning of cryptocurrency mixer Tornado Cash by the U.S. Treasury and the arrest of Mango Markets exploiter Avraham Eisenberg may have deterred potential hackers.
Despite the decrease in Q1, history shows that crypto users should not lower their guard. Crypto hacks fell significantly in Q3 2022, right before a record-setting number of hacks in Q4, which made 2022 a record year.
TRM Labs noted that just a few large-scale attacks could be enough to tip the scales again. In January, blockchain security firm Certik stated that it does not anticipate a respite in exploits, flash loans, or exit scams, and predicts further attempts from hackers targeting bridges in 2023. Such bridges accounted for six of the 10 largest exploits in 2022, which saw around $1.4 billion stolen.