In 2023, cryptocurrency users lost close to $2 billion to scams, deceitful tactics, and online thefts, which is roughly half the figure seen in the prior year.
However, it highlights that the digital currency world still faces significant security challenges, according to a report from the security app De.Fi.
The decrease in losses can be largely credited to better security measures being put in place, a more informed user base, and a slowdown in cryptocurrency market activity.
When considering the significant losses of $40 billion associated with the collapses of companies such as Terraform Labs, Celsius, and the FTX exchange, the overall decrease in losses appears even more pronounced.
This decline in financial mishaps aligns with a market downturn where many popular digital coins saw their values drop by as much as 85% from their highest points in 2021. Fortunately, these coins have started to regain value recently as market conditions have become more positive.
Moreover, the chance of recovering lost funds has improved substantially, rising to about 10% from a mere 2% in the previous year, as noted by De.Fi.
Also Read: Crypto Hacks Surge in November, Losses Total $173 Million
