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

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, 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.