Crypto Theft Responsible for Over $2billion in Losses in 2022, finds Crystal Blockchain

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Bad actors continue to find new spaces to transact with peer-to-peer exchanges. Blockchain analytics tool provider Crystal Blockchain details the latest blockchain data in its recent report.

Accord­ing to Crys­tal Blockchain’s ‘Cryp­to Asset & Blockchain Indus­try Report 2022‘, there was a 15 per cent increase in funds sent to the dark­net from illic­it sources in 2022. The report aims to sup­port finan­cial insti­tu­tions, reg­u­la­tors, and cus­tomers make edu­cat­ed deci­sions about man­ag­ing cryp­tocur­ren­cy risks in the future.

Marina Khaustova Crystal Blockchain report
Mari­na Khaus­to­va, CEO of Crys­tal Blockchain

Mari­na Khaus­to­va, CEO of Crys­tal Blockchain, explained what the report sought to cov­er. She said: “2022 has seen some of the most seis­mic events not only in the cryp­to asset and blockchain space but also eco­nom­i­cal­ly and socially.

“In our report, the team at Crys­tal Blockchain aims to pro­vide you with an overview of the state of play in the dig­i­tal asset indus­try in 2022, how it fits into the broad­er glob­al land­scape, and where we see the indus­try going in 2023 and beyond.”

The report found that 2022 saw a sig­nif­i­cant increase in the num­ber of large-scale hacks, scams, and oth­er crimes using cryp­to. Because of this trend, a range of author­i­ties and reg­u­la­tors took big steps toward reg­u­lat­ing crypto.

Cryp­to hack­ers have stolen over $2billion in 2022, with an upward trend in DeFi project exploits. The blockchain tool provider found that NFTs have also become increas­ing­ly pop­u­lar among rug pull scam­mers. Over­all, in the first half of 2022, over $70million has been stolen in rug pulls based on NFT projects.

Decentralised Finance Hacks

Crys­tal Blockchain’s July cryp­to report found that DeFi hacks were most pre­dom­i­nant in the first half of 2022. The comapny’s analy­sis shows that 154 cas­es of ille­gal activ­i­ty took place at that time. Of those, 51 per cent were con­nect­ed to DeFi hacks, with over $1.934million worth of cryp­to stolen. Fraud­u­lent activ­i­ty saw $132million being lost, while $77million was lost due to secu­ri­ty breaches.

Approx­i­mate­ly $14.5billion in cryp­tocur­ren­cies has been stolen between Jan­u­ary 2011 and 10 July 2022, the report found. Crys­tal Blockchain also found that, until 2021, the most pop­u­lar method used to steal cryp­to was the infil­tra­tion of cryp­to-exchange secu­ri­ty sys­tems. Since then, DeFi hacks have become the fastest-grow­ing method used for cryp­to theft.

In the first half of 2022 alone, stolen funds from just the top 10 DeFi attacks exceed­ed $2.5billion. The report pre­dicts that despite efforts by DeFi com­pa­nies to tack­le hacks with height­ened secu­ri­ty mea­sures, cryp­to-theft using the method is to con­tin­ue grow­ing. It explains that meth­ods and tech­nolo­gies used by ille­gal hack­ers con­tin­ue to become more sophis­ti­cat­ed and advanced. This ensures that, for the time being, cryp­to theft will continue.

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