SlowMist, a renowned blockchain security company, recently published its mid-2023 report on Blockchain Security and Anti-Money Laundering (AML). The report offers a comprehensive overview of the current global landscape of blockchain security and AML developments.

The first half of 2023 witnessed significant growth and increased security challenges in the blockchain sector. According to SlowMist’s Blockchain Hack Incident File, there were 185 security breaches resulting in a massive loss of $920 million. However, this figure represents a 54% decrease compared to the first half of 2022, which saw losses of around $2 billion.

The report classifies the incidents into five sectors: DeFi/NFTs/Bridge, Trading Platforms, Public Chain, Wallet and Others. The DeFi, NFT, and Cross-chain Bridge sectors were the most affected, with 131 incidents resulting in losses of approximately $487 million. Even though there were fewer incidents in other categories, they still resulted in significant financial losses.

In a positive development, the first half of 2023 saw the successful recovery of stolen funds in 10 instances. Of the $232 million stolen, a staggering $219 million was recovered, including full refunds in three cases. This trend highlights the importance of strong security strategies and effective negotiations.

The report also underlines the intensification of the global approach in the fight against money laundering. Regulatory bodies around the world are reshaping the AML landscape, with notable actions being taken by Tether, Circle, ChipMixer, the US Treasury Department, Hong Kong, Indonesia, the UK, and France.

Mixed platforms like Tornado Cash and eXch experienced significant user activity and were widely used for questionable transactions. Phishing scams, perpetrated by groups such as Pink Drainer, Vemon Drainer, Monkey Drainer, Pussy Drainer, and Inferno Drainer, continue to pose a significant threat within the blockchain community.

The activities of hacking groups like the Lazarus Group highlight the increasing sophistication of threats within the blockchain ecosystem. These groups employ complex multi-chain paths and intricate transaction patterns to launder stolen assets and evade detection, requiring advanced countermeasures and investigative methods.

SlowMist’s report aims to arm individuals and the blockchain industry in general with the knowledge needed to counter these evolving threats.