We Are Now in a "Crime Season", Says WF Co-Founder Andrei Grachev
Key Points: Grachev warns that cryptocurrency crime is on the rise this season. 2024 saw billions lost due to major hacks and security breaches. DWF co-founder Andrei Grachev has noted a significant rise in cryptocurrency crime, coining the term “crime season” to describe the current climate. From February to May last year, hacks resulted in losses of around $2.2 billion, with notable incidents like the $305 million breach at DMM Bitcoin. Cybersecurity vulnerabilities, particularly in centralized finance platforms, are raising alarm. Investors are urged to conduct thorough research to navigate these increased risks. February Kicks Off with “Crime Season” – Millions of Dollar Stolen DWF co-founder Andrei Grachev highlights increased risks and significant security breaches across platforms saying that “It is a “crime” szn, whenever can happen and whatever can be a short term trend“. As the cryptocurrency industry entered 2025, it faced serious security challenges, highlighted by a loss of approximately $74 million to hacks in January, marking a ninefold increase from December. Most losses (93%) occurred on centralized finance platforms, which are typically viewed as safer. The notable hack at Phemex accounted for around $73 million, raising concerns about compromised private keys, while UwU Lend experienced a $19.3 million exploit. Grachev urges investors to be cautious and emphasize thorough research in this volatile environment. The rise in thefts, particularly from North Korean hackers, underlines the urgent need for better cybersecurity measures in the blockchain sector. Crypto Hacks Hit $2.2B in 2024, Up 21% From 2023 During this period last year, between February and May 2024, major hacks led to substantial losses, with PlayDapp losing $290 million and DMM Bitcoin facing a $305 million compromise. In 2024, the cryptocurrency sector experienced a surge in hacking incidents, resulting in around $2.2 billion lost across 303 breaches, a 21% increase from 2023. Noteworthy attacks included the $234.9 million breach at India’s WazirX. Compromised private keys accounted for 43.8% of the losses. North Korean hackers were implicated in 47 incidents, stealing $1.34 billion, as the focus shifted from decentralized finance platforms to centralized services, raising security alarms. The trend of crypto account hacks continues to alarm industry experts and investors alike. DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.