In the closing month of 2024, the digital asset community witnessed a significant reduction in financial losses due to scams, exploits, and hacks. December registered the lowest amount stolen all year, marking a hopeful trend of diminishing cybercrimes in the crypto space.
Monthly Breakdown of Losses
Blockchain security firm CertiK reported that December saw a total of $28.6 million lost to various malicious activities, a noticeable drop from $63.8 million in November and $115.8 million in October. Exploits continued to dominate these incidents, with attackers pilfering $26.7 million in December alone.
The most significant theft occurred on the decentralized finance (DeFi) platform GemPad, where an attacker exploited a smart contract vulnerability to steal $2.1 million. Another major incident involved the DeFi project FEG, where a hacker manipulated the token bridge to illicitly withdraw $1 million worth of FEG tokens.
CertiK’s detailed analysis pinpointed the primary vulnerability in FEG’s incident as an error in the crosschain message verification process, which the hacker exploited to execute unauthorized withdrawals.
Similarly, blockchain security firm PeckShield reported a total of $24.7 million lost in December, a 71% decrease from the previous month. The firm documented over 25 hacks, with the most significant being the exploit of LastPass users on December 16 and 17, resulting in a $12.3 million loss, according to onchain data analyzed by Web3 security expert Zachxbt.
This decline in December contrasts starkly with the previous years’ figures, where 2024 saw $2.3 billion stolen across 165 incidents, a 40% increase from 2023. However, it still represents a 37% decrease from the $3.78 billion stolen in 2022. Cyvers, in their 2024 Web3 Security Report, attributed the rise in 2024 primarily to breaches in access control systems, especially in centralized exchanges and custodial services.
What The Author Thinks
The recent downturn in crypto thefts in December 2024 brings a glimmer of hope to an industry often marred by high-profile security breaches. This trend highlights the increasing efficacy of enhanced security measures and more robust regulatory frameworks being implemented across the sector. As we venture into 2025, the crypto community must continue to prioritize advancements in security technologies and foster a culture of vigilance and resilience. By doing so, we can aspire to not only sustain but accelerate this positive trend, ensuring a safer environment for investors and users alike.
Featured image credit: Freepik
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