A new report from digital currency data site Crypto Head suggests that crypto fraud and theft is at an all-time high in the year 2021. There are more data breaches and infiltrations of exchanges and trading platforms occurring this year than at any other point in the history of cryptocurrency.
Crypto Head: Digital Currency Theft Has Reached a New Peak
This is to be expected in many ways given that the crypto space has risen to boast a valuation of more than $2 trillion. The arena is larger than ever and has attracted hoards of new clients and customers to the scene, but in doing so, it has also attracted more crime and more illicit actors looking to get rich quick through malicious means.
We are seeing several cases of this as of late. Examples include the recent draining of wallets tied to Cream Finance, a decentralized crypto lending platform. Not long ago, the company announced that a door had inadvertently been opened when the firm tried to integrate new AMP units. This door allowed a hacker to step in and wipe approximately $34 million from the platform.
In a statement, the company said that it was looking to replenish all the lost funds and assist all who have been affected. It also said that it is cooperating with law enforcement in an investigation relating to the hack, though it would see the investigation end should the hacker decide to return all the funds in a timely manner.
The Liquid exchange was also recently hacked, resulting in millions of dollars lost overnight. One strange incident involves the Poly Network, a firm that represents several blockchains including those of Ethereum, Binance, and of course, Poly. As much as $610 million in digital funds were taken by what is turning out to be a “white hat” hacker. The individual stole all the money, only to later give it all back when prompted, claiming they did so as a means of showing Poly what it needed to fix in its system. The hacker also put out a message saying they were stepping away from the game.
So Many Incidents!
But while this specific scenario has a happy ending, the fact remains that it stems from a hack, and cases like these are not only growing every day, but most of the time, result in money being permanently lost or stolen. Crypto Head discusses 32 separate acts of fraud in 2021. These hacks account for nearly $3 billion in stolen digital currency funds since the beginning of the year.
In 2020, Crypto Head says there were 38 incidents of crypto fraud, and with four months left, it looks like 2021 is likely to break this “record.” In addition, that $3 billion figure represents a jump of more than 40 percent in just the last two years alone.