Crypto Crime Wave: $22.7B Lost

A recent analysis by Crystal Intelligence, a blockchain analytics provider, reveals that the digital currency market has been plagued by approximately $22.7 billion in losses due to fraudulent schemes and security compromises since 2011.

The study identified over 1,000 confirmed instances of unlawful access, deceitful practices, and lapses in security within the decentralized finance (DeFi) realm, with Ethereum emerging as the most frequently targeted cryptocurrency.

During the period spanning 2024 to 2025, Ethereum retained its position as the prime target, accounting for 98 separate incidents, which resulted in a cumulative loss of $2 billion. The cryptocurrency was heavily involved in most major thefts, fraud cases, and almost all activities linked to mixer-based laundering.

The report explains, “While Bitcoin and Solana were also frequent targets, Ethereum’s widespread use within DeFi and fundamental infrastructure elements renders it a consistent focal point for perpetrators.”

Over the twelve-month period from April 2024 to March 2025, a decrease in the number of incidents was observed alongside an increase in financial losses. Although the recorded number of occurrences reduced by 44 percent compared to the preceding year, totaling 184 events, the overall value pilfered saw a 33 percent increase, reaching a staggering $3.6 billion, according to the data.

This shift was mainly influenced by several major thefts, most notably the $1.5 billion exploit targeting Bybit in February 2025. The report highlights that this singular incident, which represents the largest crypto theft to date, points towards a growing trend of highly focused, sophisticated attacks that lead to extensive damage within a compressed time frame.

Bybit confirmed that it was the target of what has been described as the largest cryptocurrency heist ever reported, involving the theft of 401,000 Ethereum, valued at over $1.5 billion.

The exchange stated that the illegal transaction stemmed from “manipulation of the transfer mechanism during a planned routine transfer” performed on one of its cold wallets. A cold wallet, a form of cryptocurrency storage disconnected from the internet, is generally considered more secure and less susceptible to hacks or theft.

The Federal Bureau of Investigation (FBI) in the United States has attributed the theft to North Korean actors.

Nick Smart, the chief intelligence officer at Crystal Intelligence, explained, “Attackers take advantage of weakened oversight to maximize the time they have to abscond with the funds.”

He further stated, “Cybercrime in the crypto sphere has entered a new era, defined not by the frequency of incidents, but rather by their magnitude and sophistication.”

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According to February data from Chainalysis, a blockchain research company, deceptive practices involving digital currencies brought in at least $9.9 billion directly on the blockchain during the previous year, representing transactions verified on the public ledger.

A separate “Crypto Crime” report by Chainalysis published in January revealed that stablecoins presently make up 63 percent of all unlawful transaction totals. Chainalysis stated that, until 2021, Bitcoin was indisputably the favored cryptocurrency among online criminals, likely because of its high trading activity.

Based on Crystal Intelligence’s analysis, the United States documented the largest number of crypto-related thefts, with 40 incidents totaling just over $1 billion. Conversely, Hong Kong topped the list in terms of the total monetary amount stolen, with 15 instances collectively accounting for close to $1.2 billion.

The study further noted, “The Plus Token fraud from 2019 remains the most substantial incident, valued at $2.9 billion, emphasizing how earlier Ponzi-style schemes set a high threshold for losses. However, the ByBit breach from 2025 signals a potentially alarming evolution. Not only is it the third-largest, but it’s also the most recent and sophisticated, involving compromised private keys and laundering across different blockchains.”

In 2024/25, security breaches comprised 56 events, causing $2.5 billion in losses—almost 70% of the total annual loss. Crystal Intelligence’s data indicated that, while security breaches made up 30% of all attacks, they were disproportionately more expensive.