A new report by TRM Labs has revealed that $400 million was lost to crypto hacks in Q1 2023, but this amount is 70% down compared to the funds lost during Q1 2022. The report also shows that the average hack size decreased from $30 million in Q1 2022 to $10.5 million in Q1 2023. Hackers are increasingly returning the money they stole in exchange for a “white hat” reward from the affected projects, and in 2023, hack victims recovered over half of the stolen funds. The decline in crypto attacks is attributed to increased regulatory scrutiny, high-profile enforcement cases, and tighter KYC/AML standards by crypto exchanges.