Losses from cryptocurrency-related scams, exploits, and hacks significantly declined in the closing months of 2024, with December marking the least costly month for such incidents throughout the year.
Blockchain security firms CertiK and PeckShield highlighted this trend in recent reports, providing insights into the evolving landscape of blockchain security.
Crypto Scam Losses Drop by 71% in December 2024
CertiK reported on Dec. 31 that approximately $28.6 million was lost to exploits, hacks, and scams in December. This figure represents a sharp drop compared to the $63.8 million in November and $115.8 million in October. PeckShield’s data echoed this trend, estimating December losses at $24.7 million, a 71% decrease from November’s totals.
A breakdown of December losses would be that total exploits accounted for $26.7 million in losses, flash loan attacks caused $1.7 million in damages, and exit scams resulted in approximately $0.2 million in losses.
PeckShield recorded over 25 hacking incidents in December, with the most significant being the exploit targeting users of the password management service LastPass. This attack, occurring on Dec. 16-17, led to the theft of $12.3 million worth of cryptocurrencies, according to on-chain evidence provided by Web3 sleuth ZachXBT.
LastPass had previously suffered a major data breach in December 2022, during which hackers accessed a backup of encrypted customer vault data.
Over time, this breach has resulted in substantial crypto losses for its users, with cybersecurity reporter Brian Krebs estimating that more than $35 million worth of assets had been stolen by September 2024 from around 150 victims.
Other Major Incidents in December
Yei Finance, a DeFi market protocol, was the second-largest victim in December, losing approximately $2.2 million in a security breach on Dec. 2.
Other notable incidents include GemPad and MEMECoin drainer attacks, both resulting in losses of $2.2 million each. The top five hacks collectively accounted for a significant portion of the monthly total.
Year-End Trends in Crypto Security
Despite the sharp decline in December 2024 as a whole saw substantial crypto losses. According to Cyvers’ Report, a total of $2.3 billion worth of cryptocurrency was stolen across 165 incidents in 2024.
While this represents a 40% increase compared to the $1.69 billion stolen in 2023, it is still a notable improvement from the $3.78 billion lost to hacks and scams in 2022.
The sharp decline in December suggests that efforts to bolster blockchain security are beginning to pay off. However, the industry still faces significant challenges as cybercriminals continue to evolve their tactics. Improved user education, robust security protocols, and continued innovation in blockchain technology remain critical to reducing these risks further.
As the crypto industry moves into 2025, maintaining vigilance and prioritizing security will be essential to fostering trust and resilience in this rapidly growing sector.
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