According to a report from blockchain security firm PeckShield, the cryptocurrency sector saw a sharp increase in security breaches in 2024, resulting in losses of up to $3.01 billion.
The figure represents a 15% increase from 2023’s figure of $2.61 billion, reflecting growing vulnerabilities in the rapidly growing digital asset market.
PeckShield analysis of 2024 crypto losses
According to PeckShield analysis, the majority of losses in 2024 will come from cryptocurrency hacks, accounting for $2.15 billion, or 71% of the total. The remaining $834.5 million came from various scams, such as phishing attacks, Ponzi schemes, and fraudulent investment platforms.
Despite the extensive losses, there have been successful efforts to recoup the lost funds. According to PeckShield, approximately $488.5 million worth of cryptocurrency has been recovered through blockchain tracking and law enforcement actions.
The report also recorded the top 10 robberies for the year, highlighting the significant scale of isolated incidents. These range from breaches of DeFi (DeFi) platforms to attacks targeting major exchanges. Notable incidents include:
These high-profile cases point to the ongoing security challenge in the DeFi ecosystem. It shows that this sector remains a prime target for hackers due to its open source nature and large reservoirs of digital assets.
Monthly attack activity trends
The bar chart accompanying the report illustrates the distribution of losses throughout the year. As shown in the chart below, performance peaks recorded in March and September coincided with major protocol vulnerabilities and periods of heightened market activity.
The increase in attacks during these months shows the need for continuous security audits and real-time smart contract monitoring. Although hacks dominate, phishing also plays an important role. Scammers have taken advantage of the surge in cryptocurrency adoption, targeting inexperienced users with promises of high profits.
One of the biggest scams of the year involved a fake investment platform that siphoned $140 million from unsuspecting investors before disappearing. This case reflects the importance of public education and due diligence in minimizing risk.
The rise in cryptocurrency-related crimes has attracted the attention of regulators and law enforcement globally. On October 1, France’s Autorité nationale des jeux (ANJ) agency launched an investigation into fraudulent cryptocurrency activities. Elsewhere, the FBI has worked closely with blockchain analytics companies to recover stolen funds and prosecute criminals.
PeckShield’s report warns of the importance of caution for cryptocurrency market participants as the industry continues to grow.
“The crypto wild west is in full swing. 3 billion USD lost in 2024 shows the increasing level of risk. It’s time to step up your digital defenses or risk becoming a traitor,” one user on X wrote comment.
