Crypto Scams, Hacks, and Exploits: December 2024 Sees Decline in Losses

Crypto Scam Losses in December 2024 Taper Off: Key Insights

Crypto Scam– Losses from crypto scams, exploits, and hacks showed a significant decrease in the final months of 2024. According to blockchain security firm CertiK, December witnessed a sharp drop in thefts, with only $28.6 million stolen, compared to $63.8 million in November and $115.8 million in October. The decrease suggests a potential improvement in security measures and awareness within the industry.

Exploit-Related Losses Remain Dominant

The majority of the losses in December were attributed to exploits, which accounted for $26.7 million of the total amount stolen. The most notable incident was a $2.1 million exploit on the decentralized finance (DeFi) platform GemPad. Attackers took advantage of a vulnerability in the platform’s smart contracts. Additionally, another significant exploit occurred with the DeFi project FEG, where a hacker exploited the token bridge to withdraw $1 million worth of FEG tokens without depositing them in the source chain.

CertiK’s analysis pointed to a flaw in FEG’s crosschain message verification process as the root cause of the vulnerability.

Hack Losses Also Decreased

In a similar analysis, PeckShield reported that hack-related losses totaled $24.7 million in December, marking a 71% decrease from November. The most significant hack was the December 16–17 exploit affecting LastPass, which drained $12.3 million in crypto. This attack followed a data breach in 2022, during which hackers accessed encrypted customer vault data, leading to the theft of millions in crypto assets.

Overall 2024 Crypto Theft Trends

In 2024, blockchain security firm Cyvers reported that $2.3 billion worth of crypto was stolen across 165 incidents, representing a 40% increase from 2023. However, this is still a 37% decrease from the record $3.78 billion stolen in 2022. Cyvers’ CEO, Deddy Lavid, noted that the rise in thefts was likely linked to access control breaches, particularly within centralized exchanges (CEXs) and crypto custodians.

The reduction in exploit-related losses during the last months of 2024 provides a more optimistic outlook for the crypto industry as security measures continue to improve.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.