Report: The number of cryptocurrency hacking and fraud incidents may set a new record in 2021

念银思唐

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2021-09-01 12:37 (UTC+8)

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So far in 2021, there have been 32 such incidents involving $2.99 billion.

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So far in 2021, there have been 32 such incidents involving $2.99 billion.

This article comes fromBusiness Insidersecondary title

Odaily Translator | Nian Yin Si Tang

Summary:

- The number of cryptocurrency hacking and fraud cases may break records in 2021.

- So far in 2021, there have been 32 hacking and fraud incidents involving $2.99 billion.

- The number of crimes has increased by an average of 41% per year.

Hacking and fraud cases in the cryptocurrency market are on the rise and could hit new highs this year, according to a study released Tuesday. And as the crypto market itself has grown, its valuation has surpassed $2 trillion.So far in 2021, there have been 32 hacking and fraud incidents, involving funds worth as much as $2.99 billion. According to Crypto Head’s analysis, this number is expected to beat the previous record of 38 cases set in 2020,40.7% increase compared to 2019

. Crypto Head is dedicated to tracking information and writing guides about the cryptocurrency market.

Attack and fraud cases this year involved an average of $93.3 million. On average, the number of crimes increased by 41 percent each year, the report said.

Among them, attacks against wallets and exchanges were the most common type, with a total of 126 occurrences in the past 10 years, surpassing decentralized finance (DeFi)-related attacks and fraud (41 each). "However, the number of DeFi attack incidents is increasing, and this new technology is more prone to potential weaknesses." Crypto Head's encryption technology author James Page wrote in the report.Over the past 10 years, $19.2 billion has been stolen through attacks and fraud. Bitcoin was the most frequently attacked cryptocurrency, accounting for 33.3% of hacking and fraud cases. At press time (Tuesday), the valuation of bitcoin, the world's most traded digital currency, is back close to $1 trillion after its recent sell-off. According to data from CoinMarketCap.com, bitcoin market capitalization accounts for about 43% of the cryptocurrency market,。

The market's valuation soared to $2.1 trillion this year

Ethereum is the second most attacked cryptocurrency after Bitcoin, with 36 such incidents in the past decade, accounting for 12.8%.

Fraud cases are actually the most lucrative for criminals, as they rake in an average of $365 million, 14 times more than assault cases, Crypto Head said.

The United States was the most frequently attacked country with 17 hacking and fraud cases, followed by the United Kingdom and South Korea with 12 and nine such cases respectively.

On current trends, 2021 may set a new record for the number of hacks, but 2017 saw the most hackers stealing an average of $223.5 million and a total of $4.7 billion. Crypto Head said the biggest hack to date was that of former cryptocurrency exchange Mt. Gox, where $615 million was stolen and led to the platform's bankruptcy in 2014.