According to the annual cryptocurrency security report released by blockchain security company PeckShield, hacking and fraud activities related to cryptocurrencies have significantly increased in 2024, with $3.01 billion worth of digital assets being stolen, an increase of approximately 15% compared to $2.61 billion in 2023.
Centralized Finance (CeFi) and Decentralized Finance (DeFi) accounted for almost an equal share of losses in 2024, but there was a decrease in the proportion of losses in DeFi platforms. In 2022, DeFi platforms accounted for about 80% of the total losses of $3.6 billion, which decreased to 70% of the $2.6 billion losses in 2023, and further dropped to 53.5% this year. This may indicate an improvement in the security of DeFi platforms.
PeckShield wrote on the community platform X:
Source: PeckShield
The report by PeckShield also pointed out that Ethereum was the most frequently attacked blockchain, accounting for 34.8% of the total incidents, followed by BNB Chain (32.1%). The largest amount of funds lost came from Ethereum, accounting for 47.3%, followed by Bitcoin, partly due to its price increase.
In terms of protocol categories, the blockchain gaming sector suffered losses of $502 million, accounting for 22.4%, with PlayDapp vulnerabilities leading to $290 million in losses.
AI to help DeFi platforms withstand cyberattacks
While the proportion of losses in DeFi and CeFi seems similar, PeckShield’s statistics highlight major events such as the $305 million hack of DMM Crypto, which significantly impacted the rise in CeFi-related losses. Critics argue that this indicates that DeFi platforms have not fully addressed the threat of cybercrime.
Supporters of DeFi believe that AI-driven tools can help strengthen platform security and counteract cybercriminals. Lingling Jiang, partner at DWF Labs, believes that a new category called “DEFAI” – AI-driven decentralized finance – will emerge in 2025. Jiang emphasizes that the new solutions should not just “patch vulnerabilities,” but rather establish a new generation of DeFi protocols that incorporate “security into every transaction.”
Luke Xie, Co-founder and CEO of Satlayer, agrees and adds that AI-related solutions will provide early warnings “before potential attacks are fully exploited.” Xie explains that AI security solutions will help users avoid situations such as honey pot attacks and obvious rug pulls scams. Data source
