In 2024, the cryptocurrency business faced considerable hurdles, including breaches and frauds that caused losses of about $3 billion. According to data from blockchain security startup PeckShield, these occurrences constituted a 15% increase from $2.61 billion in 2023.
Hacks caused the majority of the losses, $2.15 billion, with scams accounting for $834.5 million. Notably, the business successfully recovered about $488.5 million in stolen assets, offering a glimmer of hope in an otherwise challenging year.
Decentralized banking platforms continued to be the principal target of criminal actors, accounting for the majority of crypto-related losses. Among the most prominent occurrences were hacks of Japanese cryptocurrency exchange DMM Bitcoin, which lost $305 million; PlayDapp, which suffered $290 million in losses; and a huge Bitcoin scam that stole $238 million. Other victims included WazirX, an Indian exchange that suffered $230 million in damages, and Gala Games, which lost $212 million.
The most disastrous month of 2024 was May, with losses totaling $662.2 million. Other high-activity months, such as July and August, witnessed losses of more than $280 million apiece. Fortunately, the latter part of the year saw a gradual drop in accidents, with December registering the lowest monthly losses of $46.5 million.
Security analysts reported an increase in assaults targeting access control weaknesses, accounting for 78% of the year’s losses. These vulnerabilities influenced a variety of areas, including decentralized and centralized finance, as well as metaverse gaming platforms.
As the cryptocurrency business expands, experts foresee changing dangers from criminal actors, particularly with the rise of AI-powered phishing schemes. Despite persistent obstacles, increased recovery of stolen assets and increased security measures indicate progress in protecting the digital asset ecosystem.
