Third Quarter of 2023 Sees $700 Million Lost in Crypto Security Incidents

Highest Financial Losses of the Year

The third quarter of 2023 has been the "most financially damaging" quarter of the year, with almost $700 million in digital assets lost to various security incidents, according to the quarterly report of blockchain security firm CertiK.

Private Key Compromises Dominate Losses

Among the exploits that led to the losses, private key compromises have been listed as the most damaging, taking over $204 million across 14 incidents. The report highlights the Multichain incident, where centralized control of private keys for businesses led to a loss of $125 million and a ceasing of operations.

Rise in Exit Scams and Oracle Manipulation

Aside from private key exploits, exit scams and oracle manipulation have also been prevalent in the quarter. A total of 93 exit scam incidents cost more than $55 million in digital assets, while 38 oracle manipulation incidents took over $16 million in crypto.

Mixin Network Hack Contributes to September's Record Losses

The exploit of the cross-chain protocol Mixin Network played a significant role in making September the biggest month for crypto exploits in 2023. The company confirmed that $200 million worth of assets were drained, leading to the suspension of all withdrawals and deposits.

Lazarus Continues to Pose Threat

CertiK's quarterly report also highlights that North Korea's state-affiliated hacking group Lazarus was still a "dominant threat actor" in the quarter. The group was responsible for at least $291 million in confirmed losses in 2023 and continued its activities in the third quarter.