Learn Concept: The Rise and Fall of Crypto Hacks and Exploits

By: Eliza Bennet

A Decrease in Cryptocurrency Exploits

In 2023, cryptocurrency users witnessed a significant decline in losses due to hacks, scams, and exploits. The losses amounted to roughly $2 billion in 2023, representing a significant decrease from the $4.2 billion lost in 2022. The year prior (2022) marked unfortunate events including the collapse of crypto giants Terra, Celsius, and FTX, contributing to a significant portion of the losses.

Layoffs at KyberSwap in Response to Exploits

Decentralized exchange aggregator KyberSwap announced layoffs of half its staff following a $54 million exploit, a drastic measure taken in response to user losses and the financial implications of such security breaches in the crypto domain.

The Impact on Innovation in the Crypto Space

These events serve as a reflection of the challenges crypto businesses face, which must strike a balance between pushing forward with innovation and establishing robust security measures to protect user assets.

Lessons to be Learned

These developments offer an opportunity to learn and implement strong security measures to prevent similar occurrences in the future.