Cryptocurrency sector records $22.7 billion in losses due to frauds and hacks over the past decade
In the rapidly evolving world of cryptocurrency, a recent report has called for increased industry collaboration and real-time response to large-scale incidents. This comes as no surprise, given the staggering losses the industry has faced in the past decade.
Since 2011, the cryptocurrency industry has lost a total of $22.7 billion to scams and hacks. The year 2024-2025 saw a significant number of incidents, with Ethereum being the most frequently targeted crypto. In fact, Ethereum was involved in 98 incidents totalling $2 billion in losses.
The largest theft during this period was the Bybit exploit in February 2025, valued at over $1.5 billion. This highly sophisticated incident involved private key compromise and cross-chain laundering. The US's Federal Bureau of Investigation has stated that North Korea was responsible for this theft.
Ethereum's deep integration across DeFi and infrastructure layers makes it a recurring focus for attackers. The large Ethereum hack in 2025, involving the theft of 401,000 Ethereum, was part of a series of DeFi exploits that year. These attacks primarily targeted governance mechanisms and access controls, using methods like AMM price curve manipulation and private key breaches. However, specific named organizations or groups behind the attack have not been publicly identified.
The Bybit theft was not an isolated incident. Crypto crime has entered a new phase, one defined less by volume and more by the scale and sophistication of individual incidents. During the 12-month period from April 2024 to March 2025, there was a 44% drop in incident volume but a 33% increase in total value stolen, reaching $3.6 billion.
Other cryptocurrencies, such as Bitcoin and Solana, also appeared frequently, but Ethereum's prominence in the DeFi space keeps it at the forefront of attackers' interests.
Stablecoins now account for 63% of all illicit transaction volumes. Fraud incidents dropped sharply to 53 cases, but total fraud losses still reached $716 million. Security breaches accounted for 56 cases in 2024/25, resulting in $2.5 billion in losses.
Interestingly, the geographical distribution of these incidents shows Hong Kong leading by value with 15 thefts worth nearly $1.2 billion.
DeFi breaches saw a significant drop in both frequency and value, totalling $372.8 million in 2024/25. This could be a positive sign, indicating that the industry is taking steps towards improving security measures.
The US recorded 40 crypto thefts worth just over $1 billion, highlighting the need for stricter regulations and better security practices in the country.
As the cryptocurrency industry continues to grow, so does the potential for fraud and theft. However, with increased collaboration and improved security measures, it is hoped that the industry can mitigate these risks and continue to thrive.
