Cryptocurrency Related Losses Surge to $2bln+ in 2022

Fraudsters continue to discover novel peer-to-peer trade environments. In its new study, the Blockchain analytics platform vendor Crystal Blockchain covers the most current blockchain statistics. As per the ‘Crypto Asset & Blockchain Industry Report 2022’ published by Crystal Blockchain, illegal monies transmitted to the darknet increased by 15% in 2022. The purpose of this research is to assist financial firms, authorities, and clients in making informed choices about the future management of bitcoin concerns.

Marina Khaustova, chief executive officer of Crystal Blockchain, described the scope of the research. “2022 has seen a few of the most tectonic developments in the cryptocurrencies and blockchain arena, as well as economically and socially,” she added. The Crystal Blockchain group intends to present an insight of the crypto currency business in 2022, how it integrates into the larger global scene, and where we foresee the sector headed in 2023 and beyond in our study.

The analysis revealed that the count of large-scale breaches, frauds, and other crypto-based crimes increased significantly in 2022. Due to this development, a variety of agencies and authorities have taken significant measures to regulate crypto. In 2022, cryptocriminals stole over $2 billion, while the number of DeFi project vulnerabilities increased. The vendor of blockchain-based tools discovered that NFTs are also growing in popularity with rug pull fraudsters. In the initial half of 2022, more than $70 million was taken in rug grabs involving NFT ventures.

In the initial half of 2022, Crystal Blockchain’s July cryptocurrency research indicated that DeFi hacks were most prevalent. According to the company’s study, 154 instances of illicit conduct occurred during that period. 51% were associated with DeFi hacks, with approximately $1,934,000 worth of cryptocurrency stolen. $132 million was stolen owing to illicit practices, while $77 million was stolen due to safety vulnerabilities.

The investigation concluded that around $14.5 billion worth of cryptocurrency were looted between January 2011 and July 10, 2022. Intrusion of cryptocurrency-exchange surveillance systems was also revealed to be the most common way of crypto theft till 2021, according to Crystal Blockchain. Ever since, DeFi attacks have emerged as the technique of crypto theft with the quickest growth rate.

During the initial half of 2022, stolen cash from the top 10 DeFi hacks alone surpassed $2.5 billion. In spite attempts by DeFi firms to combat hackers with enhanced security mechanisms, the research forecasts that cryptocurrency-theft through this approach will continue to increase. It describes how the tactics and technology used by illicit hackers continue to evolve and grow more advanced. This insures that cryptocurrency stealing will persist for the foreseeable future.