Losses from hacks and scams in the cryptocurrency industry surged in 2024, with bad actors raking in billions in funds.
According to web3 security firm PeckSheild’s 2024 annual report, crypto investors lost $3.01 billion in 2024, making a roughly 15% increase from the previous year.
However, it was still less than the $3.6 billion lost in 2022.
Hacks were the primary driver behind last year’s losses, accounting for more than 70% of the funds lost to cyberattacks, while scams contributed to the remainder.
The decentralised finance sector was the most targeted, and it continued to dominate over centralised finance in both the frequency and severity of attacks.
Per the report, losses from hacks amounted to an estimated $2.15 billion, nearly matching the total losses incurred in 2023, which stands at $2.61 billion.
Meanwhile, scammers managed to dupe crypto investors out of an additional $834.5 million.
In terms of monthly losses, May was particularly devastating when losses surpassed $662 million, while December recorded the least among the losses in 2024 at $46.5 million.
July and August also saw substantial illicit activity, with losses exceeding $280 million each.
A huge chunk of the yearly losses came from just three incidents, which contributed to a combined total of $833 million.
The biggest hacks of 2024
DMM Bitcoin
Japan’s DMM Bitcoin recorded the most losses in 2024 after exploiters drained roughly $305 million from the platform after its private keys were compromised.
PlayDapp
South Korean crypto gaming and NFT platform PlayDapp suffered one of the largest hacks in 2024, losing $290 million in an exploit between February 9th and 12th.
The attack stemmed from a private key breach, which allowed the attackers to add a new minter to the platform.
WazirX
The July hack of Indian cryptocurrency exchange WazirX shook the local market after bad actors drained $230 million worth of user assets from the exchange’s hot wallet.
Hackers managed to gain access to 4 of the 6 signatures required to sign a transaction, allowing them to upgrade the wallet to a malicious contract.
An unnamed Bitcoin-related scam also ranked in the top three in terms of losses, with victims losing approximately $238 million.
A surge in crypto crime
An earlier report by web3 security firm Cyvers supports the recent findings.
Notably, the number of hacking incidents in the crypto space surged by over 40% in 2024.
Researchers pointed to access control breaches as the primary attack vector, accounting for 81% of the total losses in 2024.
These breaches occur when attackers exploit weaknesses in authentication systems, permissions settings, or private key management to gain unauthorised access to critical infrastructure.
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