Since 2011, crypto hacks have resulted in a staggering $19 billion in losses. Drawing on this figure, illegal activities on the blockchain have continued to rise according to a report from Crystal Blockchain.
There is a need for Increased Security
The report, according to Coindesk, detailed 785 incidents of crypto theft, including 220 security breaches, 345 Decentralized Finance (DeFi) hacks, and 220 fraud schemes.
One of the most significant events in this timeline occurred in 2019, with the PlusToken Ponzi Scheme leading to the theft of $2.9 billion. The data underscores the vulnerability of the blockchain ecosystem to various forms of illicit activity.
The number of crypto crimes has risen sharply, and in 2023, there were a record number of crypto thefts totaling 286 incidents valued at over $2.3 billion. Crystal Blockchain’s report emphasizes the necessity for increased security and regulatory measures within the cryptocurrency sector.
As the market expands, so does the level of sophistication among those seeking to take advantage of it. Implementing stronger security protocols and improving supervision could help reduce the risks associated with these activities.
Rising Hacks and Phishing Schemes in the Crypto Space
The crypto industry has seen its fair share of fraud and illicit activities this year. Just recently, over 48 billion yen worth approximately $305 million was siphoned from Japanese cryptocurrency exchange DMM Bitcoin. Unfortunately, this attack on the protocol marks the second largest crypto heist that the region has recorded in recent time following the 2018 Coincheck hack worth 58 billion yen.
Likewise, the official X accounts of top celebrities were recently hacked to promote crypto scams. This development has raised the need for appropriate preventive measures and security in the crypto ecosystem.
Efforts to fight crime are also rising as Crypto-Vanguard reported that Binance Exchange played a huge role in apprehending the suspect connected to the rug pull of Zkasino, an online gambling platform based on crypto.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of Crypto-Vanguard’s content as such. Crypto-Vanguard does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.