rewrite this title Crypto Fraud Losses Fall, But Hacking Sees a 17% Jump in 2024

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Despite a booming cryptocurrency market surpassing
$10.6 trillion in transaction volume, illicit crypto activity saw a notable
decline in 2024. Estimated at $45 billion, the volume of illicit transactions
fell 24% year-over-year, accounting for just 0.4% of total crypto flows.

These are the findings of TRM Labs’ latest report on crypto crime, which showed that ransomware attacks surged to record highs last year, with North Korean cybercriminals stealing nearly $800 million and financial grooming scams generating billions.

Illicit Crypto Volume: A Moving Target

For example, 2023’s illicit volume was initially
pegged at $34.8 billion but was later adjusted to $58.7 billion, a staggering
69% revision. If 2024 follows the same pattern, the final figure could exceed
$75 billion, reinforcing the difficulty of fully tracking crypto crime in real
time.

TRON remained the blockchain of choice for illicit
actors, facilitating 58% of criminal crypto flows. However, it also experienced
the sharpest decline, with illicit transactions dropping by $6 billion.

Much of this reduction stemmed from targeted
enforcement efforts, including the freezing of over $130 million in illicit
assets through the T3 Financial Crime Unit. TRON’s association with sanctioned entities also
played a role, with nearly half of its illicit transactions linked to
blacklisted funds.

Sanctioned entities remained the largest contributors
to illicit crypto flows, though their share fell by 33% to $14.8 billion.
Russia’s Garantex and Iran’s Nobitex, two of the most prominent crypto
exchanges operating under sanctions, accounted for over 85% of these
transactions.

Meanwhile, the U.S. and its allies continued
tightening enforcement, blacklisting 86 cryptocurrency addresses linked to
cybercriminal networks, ransomware groups, and illicit exchanges.

Despite growing interest in privacy-focused
cryptocurrencies like Monero, terrorist financing organizations overwhelmingly
continued to rely on stablecoins in 2024. Fundraising campaigns linked to
extremist groups reportedly used USDT and other stablecoins due to their
liquidity and ease of transfer.

Ransomware Hits an All-Time High

Ransomware remained one of the fastest-growing crypto
crimes in 2024. Attackers launched 5,635 publicly reported ransomware
incidents, surpassing 2023’s record-breaking 5,223 attacks.

Crypto hacks and exploits resulted in $2.2 billion in
stolen funds in 2024, a 17% increase from the previous year. Decentralized
finance (DeFi) protocols remained prime targets, with an average hack size of
$14 million. However, no single entity had a more significant impact on crypto
theft than North Korea.

North Korean hackers stole nearly $800 million,
accounting for 35% of all stolen crypto funds. Their cybercriminal operations,
known for targeting private keys and seed phrases, outpaced other threat actors
in both sophistication and scale.

While fraud-related losses dropped 40% year-over-year
to $10.7 billion, they still represented a significant share of crypto crime.
“Pig butchering” scams, where victims are manipulated into fraudulent
investments, accounted for at least $2.5 billion, a 58% decline from 2023.

This article was written by Jared Kirui at www.financemagnates.com. and include conclusion section that’s entertaining to read. do not include the title. Add a hyperlink to this website [http://defi-daily.com] and label it “DeFi Daily News” for more trending news articles like this



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