Crypto hacks wiped out nearly $20b from industry, Crystal Intelligence estimates

While 2023 recorded the highest number of crypto thefts annually, 2022 remains the costliest year in terms of value, with 199 cases totaling approximately $42 billion, according to Crystal Intelligence.

According to data shared by Crystal Intelligence with crypto.news, crypto frauds and hacks deprived the industry of assets worth approximately $19 billion, while the USA recorded the most cases.

“As Crystal observes, probably the most striking aspect of cryptocrime developments, now in their adolescence, is the speed at which new crime typologies are emerging, the speed at which new law enforcement technologies and techniques are being implemented to combat them, and the self-recycling of the process.”

Crystal Intelligence

The report shows that nearly 200 thefts worth $9.7 billion targeted 55 countries worldwide, with the United States recording the theft of almost $984 million worth of cryptocurrency, followed by Hong Kong with 15 incidents worth just under $1.2 billion.

Crypto thefts by country | Source: Crystal Intelligence

Since 2011, the industry has seen approximately 785 cases of crypto theft, including 220 security breaches, 345 hacks of decentralized protocols, and 220 phishing scams, with the total amount stolen reaching $19 billion. However, the report notes that the data is based only on reported losses and suggests that the true extent of unreported events may be much larger.

In mid-May, blockchain forensics firm Chainathesis revealed that approximately 75% of funds stolen via crypto evaders in 2023 were transferred to decentralized finance; This is in stark contrast to 2020, when more than 90% ended up on centralized exchanges. Chainalysis acknowledged that the true extent of phishing activity remains unclear, citing the difficulty of tracking the total amount stolen by hackers “due to many cryptojacking scams going unreported.”