Crypto thefts are a growing problem, with 2022 being the costliest year on record despite 2023 having the most incidents.
Takeaways:
– 2023 Most Incidents, 2022 Most Costly: While 2023 saw the highest number of crypto thefts, 2022 remains the year with the largest total value stolen, reaching nearly $42 billion across 199 incidents (according to Crystal Intelligence).
– Global Problem: Crypto scams and hacks affected 55 countries in 2023, with the U.S. experiencing the most incidents and the highest value stolen (almost $984 million). Hong Kong followed with nearly $1.2 billion stolen across 15 incidents.
– Evolving Threats: Crystal Intelligence emphasizes the dynamic nature of crypto crime, with new criminal methods emerging alongside counter-measures from law enforcement.
– Underreported Issue: The report suggests the true scale of crypto theft is likely much larger than reported figures, as many incidents may go unreported.
– Shifting Targets: Data from Chainalysis (not included in this excerpt, but mentioned) shows stolen funds increasingly flow towards decentralized finance (DeFi) in 2023 compared to centralized exchanges in 2020. Phishing scams remain a concern, but their true impact is difficult to quantify.
Blockchain forensics firm Chainalysis found a significant shift in where stolen funds are directed. In 2023, nearly 75% of funds stolen via crypto drainers went to Decentralized Finance (DeFi) platforms, compared to over 90% going to centralized exchanges in 2020. This suggests cybercriminals are exploiting DeFi as a way to potentially launder or hide stolen crypto assets. Chainalysis acknowledges the difficulty in measuring the true impact of phishing scams used to steal crypto. This is because many crypto drainer scams likely go unreported.
