In 2023, $2 billion was lost to scams, deceitful tactics, and online thefts in the cryptocurrency world, according to a report from the security app De.Fi released on Wednesday. This is roughly half the figure of the prior year, however it still highlights the significant security challenges the digital currency world faces.
The decrease in losses can be attributed to better security measures, a more informed user base, and a slowdown in cryptocurrency market activity. This is even more impressive when considering the significant losses of $40 billion associated with the collapses of companies such as Terraform Labs, Celsius, and the FTX exchange.
This decline in financial mishaps coincides with a market downturn, where many popular digital coins saw their values drop by as much as 85% from their 2021 highs. Fortunately, these coins have started to regain value as market conditions have become more positive.
Furthermore, the chance of recovering lost funds has improved substantially, rising to 10% from 2% in the previous year, as reported by De.Fi. This is a positive development for those affected by the financial losses.
