Between January 2011 and February 2023, about $16.7 billion worth of cryptocurrencies were stolen, indicating increasing illegal activity in the United States Cryptocurrency and DeFi marketsafter a report.

DeFi hacks on the rise

The study conducted by Crystal blockchainwhich included data from the start cryptocurrency exchange hack (Mount Gox) in 2011 through February 18, 2023 showed a shift in criminal focus from infiltrating crypto exchange security systems to DeFi hacks.

The report details 231 DeFi hacks, 135 security attacks, and 95 fraudulent schemes over the past 12 years.

In 2022, the ratio of centralized exchanges (CEX) to decentralized exchanges (DEX) hacks reached as high as 1:13. The biggest DeFi hack to date affected the Ronin Network in March 2022, stolen with over $650 million.

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NFT market scam emerges

As the popularity of non-fungible tokens (NFTs) skyrocketed in 2021, with market cap growing by 1,785%, the report also noted a rise in NFT-related scams.

In the first half of 2022 alone, investors were scammed by seven rug pulls based on NFT projects.

Tornado Cash: A popular money laundering tool

Tornado Cash remains the most popular service for laundering stolen funds on the ether ETH/USD Blockchain.

The platform was used by a Ronin network hacker who moved the bulk of the stolen funds through the service.

Geographic distribution of Exchange security breaches

According to the report, exchange security breaches have been common in countries like the United States, the United Kingdom, South Korea, Japan, and China.

The Crystal Blockchain report underscores the importance of addressing security vulnerabilities and fraudulent activity in the rapidly evolving areas cryptocurrency and DeFi landscape to protect investors and maintain industry credibility.

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