How Hack-Driven Crypto Laundering Reached $1.3 Billion in 2024: Insights and Analysis
Hack-driven crypto laundering has become a significant concern in the blockchain industry, with 2024 witnessing a staggering $1.3 billion in laundering activities, according to PeckShield. This represents a 280% surge from the $342 million recorded in 2023, showcasing the alarming growth in cybercriminal activities. The rise has been attributed to increasing crypto prices, particularly as Bitcoin’s value more than doubled since early 2024.
PeckShield’s report highlighted that hack-related losses exceeding $1 million contributed substantially to this surge. Chain hopping, a technique used to obscure transactions by moving coins between blockchains, accounted for $452 million. Another $468 million came from coin mixing services, further complicating the tracing of illicit funds.
Despite this alarming trend, scam-related losses showed a decline, dropping to $834.5 million in 2024 from $1.1 billion in 2023. However, phishing scams remained a dominant threat, constituting nearly 80% of scam losses at $660 million. These scams exploit unsuspecting users, stealing funds and personal data under the guise of legitimate services.
Read More : Mudrex Suspends Withdrawals Amid 200% User Growth
August 2024 proved to be a critical month, with hack-related losses peaking at $293.4 million. Bitcoin scams were at the forefront, resulting in $238 million in losses. Another notable event was a poisoning scam involving Wrapped Bitcoin, which caused a $71 million loss. Additionally, rug pulls on platforms like BitForex and ZKasino resulted in combined losses of $90 million.
PeckShield’s data also sheds light on the broader impact of crypto-related crimes. In 2024, the total cost of hacks and scams amounted to $3.01 billion, a 15% increase from $2.61 billion in 2023. Out of this, $2.15 billion originated from hacks, while $834.5 million stemmed from scams. Notably, $488.5 million of stolen funds were recovered, showcasing the industry’s growing ability to combat such crimes.
The rise of hack-driven crypto laundering highlights the urgent need for enhanced blockchain security and regulation. As hackers employ sophisticated methods like chain hopping and coin mixing, the industry must adapt by leveraging advanced tools and cooperation between stakeholders. Moreover, educating users about phishing scams and other threats is crucial to reducing vulnerabilities.
The upward trend in hack-driven crypto laundering serves as a wake-up call for the blockchain community. While technological advancements have revolutionized the financial landscape, they also present new challenges. Strengthening security measures, fostering collaboration, and promoting user awareness are key steps in mitigating these risks and ensuring a safer crypto ecosystem.