According to Crystal Intelligence's report, in the last 13 years, the cryptocurrency industry has faced 785 cases of theft, resulting in losses of approximately $19 billion.
Blockchain Crimes Continue to Increase
The report highlights the ongoing and growing problem of blockchain-related crimes despite advances in security measures.
The report divides incidents into three main types:
Security Violations: 220 incidents
DeFi Hacks: 345 incidents
Fraud Schemes: 220 incidents
The most significant theft recorded was the 2019 Plus Token Ponzi scheme, which resulted in losses of $2.9 billion. The increasing trend in crypto crimes continued and 2023 was a record year. That year alone there were 286 thefts worth over $2.3 billion.
Increased Illegal Activities
“Despite improved and enhanced monitoring and reporting mechanisms, illegal activities on the blockchain continued to increase,” the report said. This statement underlines the challenges the industry faces in combating sophisticated cybercriminals.
Most Targeted Platforms
Ethereum has emerged as a primary target for crypto criminals over the past two years, with 131 incidents resulting in losses of approximately $1.3 billion. Binance Smart Chain (BSC) was attacked 100 times, causing a loss of over $186 million.
Latest Events
The report includes data until March 2024, but states that since then, Japanese crypto exchange DMM Bitcoin has been hacked for $320 million.
In response, DMM Bitcoin announced plans to raise capital to fully refund affected users.
Ongoing Efforts and Challenges
The steady increase in crypto-related crimes highlights the urgent need for robust security protocols and regulatory frameworks.
Despite advances, the dynamic and decentralized nature of the blockchain industry poses ongoing challenges in securing digital assets.
As the cryptocurrency landscape evolves, industry stakeholders must be vigilant and proactive in developing innovative solutions to protect against theft and fraud and ensure the security and integrity of the digital financial ecosystem.
*This is not investment advice.
