December 2024 marked a significant milestone for the cryptocurrency industry as losses from hacks, scams, and exploits fell to $29 million, making it the lowest month of the year. Reports from blockchain security firms CertiK and PeckShield highlighted the steep decline, showcasing a sharp contrast to the higher figures recorded earlier in the year.

CertiK revealed in a Dec. 31 report that losses for December totaled $28.6 million, significantly down from $63.8 million in November and $115.8 million in October. Of the December losses, $26.7 million came from exploits, while the remainder resulted from scams and other malicious activities.

One of the largest incidents reported during the month involved decentralized finance (DeFi) platform GemPad, where a vulnerability in its smart contracts allowed an attacker to siphon $2.1 million. 

Another notable exploit targeted the token bridge of the DeFi project FEG. A hacker manipulated the cross-chain messaging verification process to withdraw tokens from the bridge contract without proper deposits, resulting in a $1 million loss.

PeckShield also provided insights, noting $24.7 million in hack-related losses during December. The firm reported that this figure represented a 71% decrease compared to November, underlining the downward trend in crypto-related exploits. 

Among the over 25 incidents recorded by PeckShield, a significant case involved users of the password management service LastPass, who collectively lost $12.3 million due to compromised crypto assets stemming from a previous data breach.

Chainalysis’ 2025 report highlighted a broader trend of decreasing effectiveness in crypto hacks. The report found that while attempts remain high, recovery rates of stolen funds are improving due to advancements in blockchain analytics and collaboration between law enforcement and private entities.

In 2024, hackers and scammers stole over $3 billion from the crypto market, but the figure represents a slight decrease compared to 2023. The largest losses were reported in the DeFi sector, which remains a prime target for cybercriminals due to its reliance on smart contracts.

Despite the optimistic numbers in December, the year as a whole painted a challenging picture for the cryptocurrency sector. According to a report by Cyvers, 2024 saw $2.3 billion in stolen assets across 165 incidents, a 40% increase compared to 2023. This rise was largely attributed to access control breaches targeting centralized exchanges and crypto custodians. However, the figure still remained 37% below the $3.78 billion lost in 2022, suggesting some progress in addressing vulnerabilities.

The decrease in December losses has been linked to improved security protocols across platforms and growing awareness among users. While the crypto industry continues to grapple with sophisticated attacks, the end-of-year data offers hope for a more secure ecosystem in 2025. As the industry evolves, the focus on proactive measures, regulatory compliance, and advanced security practices will remain crucial in combating malicious activities.