December’s Crypto Thefts Soar to Nearly $100M, Marking Year-End Surge in Digital Asset Crimes

The post December’s Crypto Thefts Soar to Nearly $100M, Marking Year-End Surge in Digital Asset Crimes appeared first on Coinpedia Fintech News

As 2023 drew to a close, the cryptocurrency community faced a significant surge in thefts, culminating in a dramatic increase in losses due to hacking and scam incidents. December witnessed one of the most severe security breaches of the year, with the total amount stolen in crypto-thefts approaching a staggering $100 million.

The Orbit Bridge Exploit

A critical event in this surge was the exploitation of Orbit Bridge on New Year’s Eve, contributing to December’s alarming theft statistics. According to PeckShield, a blockchain security analytics firm, the $81.5 million breach on Orbit Bridge was a major contributor to these figures. Overall, December saw approximately $100 million stolen across 36 different hacking incidents, with the Orbit Bridge attack ranking as the ninth most impactful cross-chain bridge hack in the past three years.

Orbit Chain’s Response

Following the breach on December 31st, Orbit Chain took swift action, engaging with global cryptocurrency exchanges to freeze the stolen assets. The team also cooperated with law enforcement agencies to track and halt the movement of the stolen funds. Continuous communication efforts with the attackers are underway, including the delivery of a second message to them.

A Year of Crypto Thefts

While the Orbit Bridge incident marked a significant end-of-year event, 2023 as a whole saw substantial losses in the crypto space. Security firms estimate total losses due to hacks, scams, and exploits to be between $1.51 billion and $2 billion. Notably, this represents a decline of about 50% from the previous year. Coinpedia’s hack report highlights particularly vulnerable periods in September and November, with over $700 million lost. Other major incidents included a $200 million loss from Mixin Network in September and significant losses from Poloniex, HTX, and Heco Bridge in November.

Conclusion

Despite a notable decrease in total losses from hacks, scams, and rug pulls compared to 2022, the cryptocurrency community remains under threat. The substantial drop in losses from $4.38 billion in 2022 to $1.4 billion in 2023 due to hacks is a positive sign, but the Orbit Bridge exploit serves as a stark reminder of the ongoing challenges within the crypto ecosystem. This underscores the need for increased vigilance and enhanced security measures to protect against potential breaches in the future.