Crypto Losses Soar to $3.01 Billion in 2024, Up 15% from Previous Year

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2024 saw one of the toughest years for the cryptocurrency sector as it suffered over $3.01 billion in losses, a report by blockchain security firm PeckShield revealed. This figure represents a 15% increase compared to the $2.61 billion stolen in the previous year.

Examining data from PeckShield, it appears the digital asset sector could be facing a critical issue that requires immediate action.

Hackers and Scammers to Blame as Crypto Losses Raise Deep Security Concern

According to information provided by PeckShield, it’s clear that most of the losses experienced within the cryptocurrency sector in the year 2024 were due to hacking activities. These digital thieves managed to pocket a staggering $2.15 billion, which accounted for more than three-quarters (71%) of all funds stolen during the year.

2020 saw a significant increase in fraudulent activities within the industry, with crypto-based scams causing over $834.5 million in losses, as reported by PeckShield.

It’s intriguing to note that despite these daunting figures, there seems to be a glimmer of optimism for the industry. This is because the recovery efforts in the year have shown some promising outcomes. In fact, PeckShield reports that approximately $488.5 million of stolen cryptocurrency has been successfully recovered.

Although it’s just a small portion of the total stolen funds, it’s undeniable that significant strides are being taken. This is particularly noticeable as law enforcement agencies and blockchain professionals collaborate closely to address the security crisis in the cryptocurrency sector.

What This Means

It’s worth mentioning that the incidence of cryptocurrency thefts in 2024 significantly outpaced the numbers from 2023. This surge might be attributable to the increasing prominence of Decentralized Finance (DeFi) platforms.

As a crypto investor, I’ve noticed that some platforms can unfortunately become magnets for unscrupulous individuals due to their security vulnerabilities, making them seemingly easy prey.

Regardless of the current circumstances, the crypto sector intends to continue pushing for worldwide cryptocurrency acceptance. It’s clear that this progression will necessitate significant changes, especially concerning security matters, to prevent potential losses in the future.

Initially, the industry is expected to continue its progress based on its recent successes, where it managed to retrieve numerous millions of cryptocurrency that were stolen. Subsequently, they will focus on enhancing their security systems to prevent future cyber attacks and fraudulent activities.

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2025-01-09 15:15