In 2024, the cryptocurrency industry experienced a significant rise in hacks and scams, with over $3 billion stolen from various crypto-related activities.
In 2024, the cryptocurrency industry experienced a significant rise in hacks and scams, with over $3 billion stolen from various crypto-related activities. According to a report by PeckShield released on Jan. 9, $2.15 billion was lost to hacks, while scams accounted for $834.5 million. This marks a 15% increase in total losses compared to 2023, which saw $2.61 billion stolen. Although the total losses grew, both the number of incidents and the amount of stolen assets were lower than in 2022, a year characterized by a market downturn and tougher regulations.
The report also highlighted the continued vulnerability of decentralized finance (DeFi) platforms, which were the primary targets for hackers. Some of the largest breaches in 2024 included the AlphaX DeFi hack, which lost $320 million in February, and the Lumos Bridge exploit, in which $250 million was stolen in July. Other high-profile incidents included hacks on the DMM Bitcoin exchange, PlayDapp, and WazirX, resulting in millions of dollars in losses.
Despite the overall increase in losses, the frequency of attacks declined toward the end of the year, with December recording the lowest losses of just $46.5 million. The report also noted a rise in attacks exploiting access control vulnerabilities, which made up 78% of the losses, affecting sectors such as DeFi, centralized finance, and gaming platforms.
Phishing scams were another major issue, with CertiK reporting over $1 billion stolen across 296 phishing incidents. These scams typically targeted less experienced crypto users, luring them into fraudulent schemes. As crypto adoption grows, security experts have warned that scammers may increasingly use AI to refine and evolve their tactics in 2025, making it harder to detect and prevent attacks.
Despite the challenges, some efforts have been made to recover stolen funds. Around $488.5 million worth of stolen crypto was reclaimed through blockchain tracing and enforcement actions. However, the scale of the losses in 2024 underscores the ongoing security risks in the crypto industry.
The report also pointed out the rise of fraudulent investment platforms, with one scam alone siphoning off $140 million from investors. These scams are expected to continue as cryptocurrency grows in popularity and institutional adoption increases. Law enforcement agencies including the FBI have been working with blockchain analytics firms to track and recover stolen funds.
In response to the growing threats, regulators are also taking action, with France’s financial authority launching investigations into fraudulent crypto operations. As the industry matures, experts continue to urge caution and emphasize the need for stronger security measures to protect users from cybercriminals.
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