The cryptocurrency sector experienced a significant decrease in losses due to scams, hacks, and exploits in December 2024.
Reported thefts totaled approximately $28.6 million, which is a notable drop from previous months. In November, losses reached $63.8 million, and in October, they were as high as $115.8 million.
Exploits were the primary source of these losses, accounting for $26.7 million of the total amount stolen. One notable incident involved the decentralized finance (DeFi) platform GemPad, where attackers exploited a vulnerability in the platform's smart contracts, resulting in a $2.1 million theft. Another incident occurred in the DeFi project FEG, where a hacker exploited the token bridge and withdrew $1 million in FEG tokens without proper deposits. These incidents highlight ongoing vulnerabilities within the DeFi space.
Another blockchain security firm, PeckShield, corroborated these findings, reporting $24.7 million in hack losses for December, a 71% decrease from November. They documented over 25 hacks during the month, with the most significant incident being the loss of $12.3 million suffered by LastPass users. This incident was particularly alarming as it followed a data breach in December 2022, which had already compromised customer vault data and led to substantial crypto thefts. Additionally, the DeFi market protocol Yei Finance experienced a security breach resulting in approximately $2.2 million being stolen. These incidents reflect a broader trend of increasing vulnerabilities in both centralized and decentralized platforms, raising concerns about the security of assets in the crypto ecosystem.
In 2024, a total of $2.3 billion worth of cryptocurrency was stolen across 165 incidents, representing a 40% increase compared to the previous year. Access control breaches, particularly within centralized exchanges (CEXs) and crypto custodians, were the main cause of this rise in thefts. The increase in thefts is likely linked to the growing sophistication of attacks on centralized platforms. As the crypto market evolves, robust security measures become increasingly critical to protect users and their assets.
The battle against cybercrime remains a pressing issue for investors and industry stakeholders. While there was a decline in losses in December 2024, the overall trend of increasing thefts throughout the year highlights the persistent vulnerabilities within the crypto ecosystem. It is crucial for investors to remain vigilant and adopt best practices for securing their digital assets, such as using hardware wallets, enabling two-factor authentication, and staying informed about the latest security developments in the crypto space. Collaboration between security firms, developers, and users will be essential in fortifying defenses against future attacks.