Blockchain Crimes Surge as Crypto Thefts Hit $19 Billion Since 2011

Cryptocurrency thefts have soared, with nearly $19 billion stolen since 2011. Crystal Intelligence’s recent report highlights this alarming trend, revealing 785 incidents of crypto-related crime. These include 220 security breaches, 345 decentralized finance (DeFi) hacks, and 220 fraud schemes.

The most significant theft occurred in 2019, involving the Plus Token Ponzi scheme, where $2.9 billion was stolen. Since then, the frequency of crypto crimes has only increased. In 2023 alone, there were 286 incidents, totaling over $2.3 billion in stolen assets.

Crystal Intelligence notes, “Even with improved and enhanced monitoring and reporting mechanisms, illegal activity on the blockchain has continued to grow.” This highlights the persistent challenge in securing blockchain technologies despite advancements in security measures.

Ethereum and Binance Smart Chain

Over the past two years, Ethereum has emerged as the primary target for cybercriminals. The report documents 131 incidents involving Ethereum, amounting to nearly $1.3 billion in losses. Following closely is the Binance Smart Chain (BSC), which has been targeted 100 times, resulting in losses exceeding $186 million.

These figures reflect the vulnerabilities in popular blockchain platforms. The growing use of DeFi platforms, which often operate with less oversight than traditional financial systems, has made them attractive targets for hackers.

The report covers incidents up until March 2024, but the trend continues. In a recent event, Japanese crypto exchange DMM Bitcoin was hacked for $320 million. In response, the company announced plans to raise capital to compensate affected users, demonstrating a commitment to protecting their customer base despite the significant setback.

The industry is at a crossroads, grappling with the dual challenges of fostering innovation and enhancing security. As blockchain technology evolves, so do the tactics of cybercriminals. Therefore, continuous improvement in security protocols is crucial to protect digital assets.