The value of cryptocurrency hacks and thefts between 2019 and 2020 increased by 38,38% from $370,7-million to $513-million, according to data researched by Trading Platforms UK.
Over the last five years, the value was highest in 2018 at $950-million, an increase of 257,14% from $266-million in 2017.
The analysis also highlights that, between 2019 and 2020, the value of blockchain fraud and misappropriation declined by -57,77% from $4,4-billion to $1,3-billion.
Cumulatively in 2019, the value of both cryptocurrency theft and blockchain fraud was $4,5-billion, while last year it dropped to $1,9-billion. The drop potentially points to a maturing cryptocurrency sector with developing systems able to detect fraudulent activities.
The report puts into perspective the value of loss in cryptocurrency theft. According to the research report: “The increase in the value of cryptocurrency theft comes even as the sector continues to mature with exchanges, wallets, and other digital assets custodians investing in their security mechanisms against hacking.
“Most custodians have also established relationships with law enforcement making it easy to trace any fraudulent activity almost instantly. However, the rise in crypto theft value is an indicator that hackers are also innovating new means to outpace the current security measures.”