Crypto Hacks Net $19B Since 2011 and Illegal Activity on Blockchain Is Still Growing

As an experienced analyst in the field of cryptocurrency and blockchain security, I find the report from Crystal Intelligence on the alarming rise of crypto thefts and illegal activities over the past 13 years deeply concerning. With almost $19 billion worth of cryptocurrencies stolen since 2011, it’s clear that this is a growing problem that the industry can no longer ignore.

Approximately $19 billion in value of cryptocurrencies have been taken illicitly since 2011, as indicated by a report from Crystal Intelligence. The digital currency sector remains challenged by escalating criminal activities linked to blockchain technology.

The report documents 785 instances of cryptocurrency theft, which include 220 security breaches, 345 incidents related to decentralized finance (DeFi), and 220 cases of fraudulent activities.

As a seasoned crypto investor, I’ve witnessed some alarming trends in the realm of digital asset crimes. The most noteworthy incident took place back in 2019 when an estimated $2.9 billion were stolen as part of the infamous Plus Token Ponzi scheme. Since then, we’ve seen a concerning uptick in crypto-related thefts, and the year 2023 set new records with a staggering 286 incidents, collectively totaling over $2.3 billion in losses.

Despite advanced monitoring and reporting systems, the illicit activity occurring on the blockchain has persisted and expanded. (Or) The blockchain’s illegal activities have not been deterred by upgraded surveillance and documentation methods.

Over the last two years, I have observed Ethereum emerge as the leading platform for cyberattacks, with a total of 131 incidents resulting in approximately $1.3 billion in losses. Binance Smart Chain (BSC) comes in second place, having experienced 100 incidents that resulted in over $186 million in damages.

The report includes consideration of all hacking incidents up until March 2024. However, following this timeframe, Japanese cryptocurrency exchange DMM Bitcoin fell victim to a hack resulting in a loss of approximately $320 million. The company has announced its intentions to secure the necessary funds to reimburse all affected users.