The world of digital assets faced a significant security challenge in 2024, as cyberattacks and scams targeting cryptocurrencies resulted in losses totaling **$3.01 billion**, according to PeckShield’s annual blockchain security report. This marks a notable 15% increase from the $2.61 billion lost in 2023, signaling a resurgence in malicious activity across the crypto ecosystem.
While both centralized finance (CeFi) and decentralized finance (DeFi) platforms bore the brunt of these attacks, a closer look reveals shifting trends in attack vectors and target preferences. Notably, DeFi platforms—once the dominant target for hackers—saw their share of total losses drop to 53.5% in 2024, down from 70% in 2023 and nearly 80% in 2022. This decline suggests potential improvements in DeFi security protocols, despite ongoing vulnerabilities.
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Shifting Attack Patterns: From Protocols to People
PeckShield highlighted an emerging trend in its analysis: hackers are increasingly shifting focus from exploiting protocol-level flaws to targeting individuals and organizations with weak security practices. Attacks leveraging poor private key management and human error rose sharply—from 33% of incidents in 2023 to 46% in 2024.
This evolution underscores a critical vulnerability in the crypto space: even the most robust smart contracts can be compromised if users or operators fail to follow secure procedures. Social engineering, phishing, and insider threats are becoming more prevalent, emphasizing the need for comprehensive security awareness across all levels of the ecosystem.
Ethereum Remains Prime Target for Hackers
In terms of blockchain networks, Ethereum continued to lead as the most frequently attacked platform, accounting for 34.8% of all reported incidents. It also suffered the highest financial losses, representing 47.3% of stolen funds—partially driven by its high asset value and extensive use in DeFi applications.
Following Ethereum, BNB Chain ranked second with 32.1% of attack events. The concentration of high-value transactions and liquidity on these two networks makes them attractive targets for cybercriminals.
Bitcoin, while less frequently exploited due to its simpler architecture, still saw notable losses, partly influenced by its rising price during the year. However, most Bitcoin-related thefts occurred at custodial services or through exchange breaches rather than direct network exploits.
Gaming Sector Emerges as Major Victim
Among protocol categories, blockchain gaming emerged as one of the hardest-hit sectors in 2024, suffering losses amounting to $502 million**, or **22.4%** of total stolen funds. A significant portion of this loss stemmed from a single incident involving **PlayDapp**, where a critical vulnerability led to the theft of approximately **$290 million.
This highlights the growing risk associated with gaming platforms that combine complex smart contracts with high-volume token transactions. As GameFi continues to expand, so does its attack surface—making it a prime area for enhanced auditing and real-time monitoring.
The Rise of AI-Powered Security in DeFi
Despite the decline in DeFi’s share of losses, major breaches like the $305 million hack of DMM Crypto underscore that systemic risks remain. Critics argue that many DeFi protocols still lack proactive defense mechanisms, relying instead on reactive fixes after breaches occur.
However, experts believe a new wave of innovation is on the horizon: AI-driven financial security. Lingling Jiang, Partner at DWF Labs, predicts the emergence of "DEFAI"—a fusion of decentralized finance and artificial intelligence—as a transformative force in 2025.
"AI and machine learning are changing the game when it comes to threat detection—imagine intelligent systems identifying suspicious activity in smart contracts before any damage occurs."
Jiang envisions a future where security isn't just layered on top of protocols but is embedded into every transaction, enabling real-time anomaly detection and automated response mechanisms.
Luke Xie, Co-Founder and CEO of Satlayer, echoes this sentiment:
"AI-powered solutions will provide early warnings before potential attacks are fully exploited."
He notes that such tools could help users avoid common pitfalls like honeypot scams and rug pulls, where developers abandon projects after collecting investor funds. By analyzing behavioral patterns and contract code in real time, AI systems can flag red flags long before users interact with malicious dApps.
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Frequently Asked Questions
What caused the rise in crypto-related losses in 2024?
The increase in losses—from $2.61 billion in 2023 to $3.01 billion in 2024—was driven by a combination of higher-value targets, improved hacking techniques, and a growing focus on exploiting weak user practices such as poor private key management and phishing susceptibility.
Why did DeFi's share of losses decrease?
Although DeFi remains a major target, its share of total losses dropped to 53.5% due to improved auditing standards, increased adoption of formal verification methods, and better incident response practices. Meanwhile, CeFi platforms experienced larger single-event breaches, skewing the distribution.
Which blockchain was hacked the most in 2024?
Ethereum was the most frequently targeted blockchain, involved in 34.8% of all attacks. Its extensive use in DeFi and high liquidity make it an attractive target despite its strong underlying security.
Can AI really prevent DeFi hacks?
Yes—AI has shown promise in detecting anomalies in smart contract behavior, identifying phishing attempts, and predicting potential exploits before they happen. While not foolproof, AI-enhanced monitoring systems significantly reduce response times and improve threat intelligence.
How can users protect themselves from crypto scams?
Users should adopt strong security practices: use hardware wallets, enable multi-factor authentication, verify contract addresses manually, avoid clicking unsolicited links, and leverage platforms with built-in AI risk detection tools.
Is CeFi safer than DeFi?
Not necessarily. While CeFi platforms often have dedicated security teams, they represent centralized points of failure. High-profile CeFi hacks like DMM Crypto show that large custodians remain vulnerable. True safety depends on implementation quality, transparency, and user diligence—not just centralization or decentralization.
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