Blockchain security firm ImmuneFi has reported a sharp 153% rise in cryptocurrency hacking incidents during the third quarter of 2023 when compared to the same period in 2022.

The number of such incidents surged from 30 to 76.

Losses stemming from these hacks and fraudulent activities also experienced a substantial increase, reaching over $685 million in Q3.

This represents a 60% rise from approximately $429 million during the corresponding period in the previous year.

The cumulative losses within the cryptocurrency ecosystem for the year so far have reached an estimated $1.4 billion.

DeFi Remains Prime Target for Hackers

Decentralised Finance (DeFi) platforms remained a prime target for successful cyberattacks, accounting for 72.9% of total losses.

In contrast, Centralised Finance (CeFi) suffered 27.1% of the losses.

Mitchell Amador, CEO of ImmuneFi, commented on the situation, saying:

"Q3 witnessed the highest loss this year, driven by large-scale attacks such as the one on Mixin Network and Multichain. State-backed actors played a crucial role as they were allegedly behind several cases this quarter."

Notably, the two most significant breaches, a $200 million hack of Mixin Network and a $126 million hack of Multichain, constituted nearly half of the total losses in the quarter.

The Lazarus Group

South Korean authorities attributed the Mixin hack to North Korean-sponsored hackers known as the Lazarus Group.

The Lazarus Group was also allegedly responsible for major hacks targeting cryptocurrency exchanges CoinEx, Alphapo, and Stake, as well as digital payments company CoinsPaid, collectively resulting in the theft of more than $200 million.

Hacking incidents dominated the loss statistics, making up 97% of the total losses, with only 3% attributable to frauds and scams.