Crypto Heists on the Decline: $10.2bn Stolen, Only $2.6bn Recovered
Crypto scammers and hackers experienced a significant decrease in inflows in 2023 after a record-breaking year of crypto heists in 2022, which saw over $3.5 billion worth of cryptocurrencies stolen. However, despite the slowdown, the total amount of stolen money remains shocking.
According to data from AltIndex.com, crypto criminals have managed to steal more than $10 billion so far, highlighting the persistent threat posed by crypto crimes.
Recovering Stolen Cryptos Remains Challenging
Over the last six years, cryptocurrency heists skyrocketed, with the number of reported hacks increasing from 15 in 2017 to 136 in 2021, according to Comparitech data. The total value of stolen cryptocurrencies surged eightfold during this period, soaring from approximately $324 million to a staggering $2.7 billion. In August 2021 alone, an alarming $730 million was lost due to crypto security threats, with an individual responsible for stealing $610 million in a Poly Network heist, making it the second-largest crypto hack. In 2022, crypto crime reached unprecedented levels as scammers and hackers managed to steal more money than in the combined years of 2019, 2020, and 2021.
The year 2022 witnessed 192 crypto heists, the highest number in the history of the crypto market, resulting in a mind-boggling theft of $3.54 billion from investors. However, the worrisome trend took a downturn in 2023, with crypto criminals stealing only around $905 million in the first eight months. This figure is less than one-third of the value stolen during the same period the previous year.
To date, a total of 718 reported heists have resulted in the theft of cryptocurrencies worth $10.2 billion. Shockingly, only one-fifth of the stolen funds, amounting to $2.6 billion, have been recovered, and the average recovery time stands at approximately 75 days.
July Witnesses the Highest Number of Crypto Heists
Although the total value of stolen cryptocurrencies experienced a significant drop in 2023, the number of crypto heists remains alarmingly high. There have been 718 cases of crypto heists worldwide since 2011, with 70% of them occurring in the last three years. In 2021, there were 136 reported crypto heists, indicating a 2.5-fold increase compared to the previous year. The number further escalated in 2022, reaching a record high of 199 crypto crimes.
In spite of the reduced value stolen so far in 2023, the year witnessed the second-highest number of crypto crimes, with a total of 178 reported heists. Notably, a quarter of all the reported heists took place in July, making it the worst month for crypto crimes to date.
While the decline in the total value of stolen cryptocurrencies in 2023 is encouraging, it is essential to remain vigilant as crypto crimes continue to pose a significant threat. Efforts to recover stolen funds must be strengthened to protect investors and maintain trust in the crypto market.
