Crystal Blockchain, a company that provides blockchain data and analytics, published a study covering security breaches, fraud, and scams related to cryptocurrency and decentralized finance (defi). According to the study, approximately $16.7 billion worth of crypto assets have been stolen since 2011. Last year, Crystal’s intelligence team documented 199 incidents that resulted in the theft of $4.17 billion worth of crypto assets. So far this year, there have been 19 different incidents that have resulted in the theft of $136 million.
Top Countries Affected by Crypto-Related Incidents: US Leads in Frequency, China Outperforms in Value
On Tuesday, crystal block chain released a report that provides a comprehensive analysis of fraudulent activities and security vulnerability attacks since 2011. The report reveals that over the past 12 years, there were 461 incidents that took place in 45 countries, resulting in $16.7 billion in stolen crypto assets.
According to Crystal’s intelligence report, 231 defi attacks, 135 security attacks, and 95 fraudulent schemes were reported during this period. Defi hacks ranked second in terms of value, with $4.81 billion stolen, while scams resulted in more than $7.5 billion worth of crypto assets stolen.
According to the study, the United States has the highest number of incidents against cryptocurrency companies and bad actors. However, in terms of overall value, China ranks first due to the Plus Token Ponzi scam in 2019 and Wotoken Ponzi in 2020.
Crystal researchers say that until 2021, the most popular attacks were against crypto exchange security systems, but since then, attackers have turned to decentralized finance hacks. Currently, Crystal reports that centralized exchange (cex) hacks cause the least amount of financial damage. “In 2022, the ratio of cex vs. (decentralized exchange (dex)) hacks was 1:13,” the Crystal researchers note.
The largest defi hack to date was the Ronin network bridge hack in March 2022, resulting in a loss of over $650 million. Most of the funds stolen in the Ronin hack were transferred to Tornado Cash, a cryptocurrency mixing service.
Crystal researchers note that “Tornado Cash remains the most popular service for laundering funds on the Ethereum Blockchain.” The report states that last year, crypto assets stolen from the top 10 defi exploits exceeded $2.61 billion. Additionally, non-fungible token (NFT) mat giveaways became popular in 2022, with Crystal counting “48 successful scams” during the year.
The Crystal Blockchain report can be read in its entirety here.
What do you think should be done to improve security measures in the cryptocurrency and decentralized finance (defi) space? Share your thoughts and ideas in the comment section below.
image credits: Shutterstock, Pixabay, Wiki Commons, Crystal Blockchain,
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