About $16.7 billion in cryptocurrencies was stolen between January 2011 and February 2023, highlighting growing illegal activity in the cryptocurrency and DeFi markets, according to a report.
DeFi Hacks On The Rise
The study conducted by Crystal Blockchain, which covered data from the first cryptocurrency exchange hack (Mt. Gox) in 2011 up until Feb. 18, 2023, showed a shift in criminal focus from infiltrating crypto-exchange security systems to DeFi hacks.
The report detailed 231 DeFi hacks, 135 security attacks, and 95 fraudulent schemes in the last 12 years.
In 2022, the ratio of centralized exchange (CEX) versus decentralized exchange (DEX) hacks reached as high as 1:13. The largest DeFi hack to date involved the Ronin Network in March 2022, with over $650 million stolen.
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NFT Market Scams Emerging
As the popularity of non-fungible tokens (NFTs) surged in 2021 and market capitalization jumped by 1,785%, the report also noted a rise in scams related to NFTs.
In the first half of 2022 alone, seven rug pulls based on NFT projects defrauded investors.
Tornado Cash: A Popular Tool For Money Laundering
Tornado Cash remains the most popular service for laundering stolen funds on the Ethereum ETH/USD blockchain.
The platform was utilized by a Ronin Network hacker, who moved the majority of stolen funds through the service.
Geographical Distribution Of Exchange Security Breaches
According to the report, exchange security breaches commonly took place in countries that included the United States, the United Kingdom, South Korea, Japan, and China.
The Crystal Blockchain report underscores the importance of addressing security vulnerabilities and fraudulent activities in the rapidly evolving cryptocurrency and DeFi landscape to protect investors and maintain the industry's credibility.
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