Crypto laundering through hacking saw a significant rise in 2024, linked to the increase in cryptocurrency prices, according to a PeckShield report.
Rise in Crypto Laundering Through Hacking
According to PeckShield's report, crypto laundering through hacking soared to $1.3 billion in 2024, a 280% increase from $342 million in 2023. The rise is mainly attributed to the significant increase in cryptocurrency valuations, with Bitcoin's value more than doubling over the year. The report highlighted that a considerable portion of hacked funds were moved via chain hopping—$452 million—and coin mixing services—$468 million.
Decline in Fraud Losses
Despite the rise in laundering, fraud losses dropped to $834.5 million, a 24% decrease from 2023. Phishing scams dominated, comprising 80% of the total losses at $660 million. August saw the peak of losses with a staggering $293.4 million stolen; Bitcoin scams resulted in $238 million, while poisoning scams with Wrapped Bitcoin caused $71 million in damages. Rug pulls added to the headlines, with $57 million lost on BitForex and $33 million on ZKasino.
December 2024 Overview
According to PeckShield, December 2024 witnessed a significant decline in hack-related losses. The month reported over 25 cryptocurrency hacks, with total losses of $24.69 million—more than 70% less than November. The most substantial incident involved LastPass, with losses of $12.38 million. Other notable hacks targeted Yeti Finance, GemPad, and FEG, each losing around $2.2 million, while Victim incurred damages of $1.3 million.
PeckShield's report highlighted a sharp increase in crypto laundering through hacking in 2024, despite a decline in fraud losses. These trends underscore the need for strengthened security measures in the cryptocurrency industry.
