Crypto Hack Losses Drop by 60% in December, Totaling $76 Million: PeckShield

Crypto Hack Losses Fell 60% in December to $76M: PeckShield

In December, crypto-related losses from hacks and cybersecurity breaches experienced a sharp decline, falling by 60% from the previous month to around $76 million, as reported by blockchain security firm PeckShield.

Key Takeaways:

Crypto-related hack losses decreased by 60% in December, reaching $76 million, a significant reduction from November's figures.
A single address poisoning scam resulted in $50 million in losses, becoming the most substantial crypto exploit of the month.
PeckShield alerts users to ongoing threats, such as key leaks and browser wallet vulnerabilities, which continue to pose significant risks.

This decrease marks a significant drop from November's total of $194.2 million, providing some respite after several months of high-profile cyber attacks in the industry.

Address Poisoning Scam Leads to $50 Million Loss

According to PeckShield, December recorded 26 significant crypto scams, with a few incidents leading to most of the losses. The largest was a single address poisoning scam that resulted in a $50 million theft.

In these types of attacks, cybercriminals execute small transactions from addresses that resemble legitimate wallet addresses. Their goal is to trick victims into copying or selecting the fraudulent address when making a transfer.

These scams exploit visual similarities; typically, the first and last few characters of the fake address match the real one, making it easy for users to overlook subtle discrepancies in transaction history. Attackers take advantage of this moment of distraction to divert funds permanently.

Another significant event in December involved the leakage of a private key related to a multi-signature wallet, leading to losses of approximately $27.3 million.

PeckShield emphasized that this breach underlines the ongoing risks in key management, even in wallets requiring multiple approvals for transactions.

While the overall decline in stolen funds may seem positive, security experts warn it does not indicate a permanent change. Notable attacks still persisted during the month, including a Christmas-day exploit affecting Trust Wallet’s browser extension, which resulted in a loss of around $7 million, alongside a $3.9 million hack impacting the Flow protocol.

Browser-based wallets remain a frequent target for cybercriminals due to their constant connection to the internet. In contrast, hardware wallets, which are offline devices designed for secure private key storage, are often recommended as the safest long-term storage options for digital assets, a fact consistently highlighted by security researchers and media outlets like Cointelegraph.

PeckShield advises users to significantly lower their risk of common exploits by following basic safety measures. These include double-checking every character of a destination address before sending funds, avoiding reliance on saved transaction histories, and keeping private keys stored offline whenever feasible.

Brooklyn Resident Charged in $16 Million Crypto Scheme Targeting Coinbase Users

In another development, U.S. prosecutors have charged a 23-year-old man from Brooklyn, Ronald Spektor, with allegedly stealing approximately $16 million in cryptocurrency from around 100 Coinbase users through a phishing and social engineering operation.

The Brooklyn District Attorney’s Office reported that Spektor impersonated a Coinbase employee and contacted victims, claiming their funds were in immediate danger, pressuring them to transfer their cryptocurrency to wallets controlled by him.

Authorities noted that the scam relied more on panic techniques than on technical hacks. Operating under the online alias “lolimfeelingevil,” Spektor allegedly warned victims of imminent theft, pushing them to make hasty decisions despite their doubts.