Unveiled: The Shocking Truth Behind 2022's Crypto Carnage
- The devastating crypto losses of 2022 have already surpassed 2024's record, a staggering $1.7 billion already vanished from cryptocurrency projects this year.
- The main culprits? Hackers and fraudsters. 2022 has seen almost $100 million in crypto stolen in April alone!
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Recorded Cryptocurrency Losses Due to Hacks and Fraud Exceed 2024 Projected Total, Accounting for $1.7 Billion as of Present Day: Immunefi Analysis
Digital assets may have gained mainstream popularity, with institutional involvement and a crypto-friendly president in the White House.
But boy, the bad guys are having a blast in 2022.
In this year alone, crypto users have lost $1.7 billion, that's already 14% more than the total losses of $1.49 billion in 2024 according to blockchain security firm Immunefi.
To put that in perspective, the losses from this time last year were a measly $420 million, the firm said.
The report comes as concerns grow about the vulnerability of DeFi networks and crypto investments as a whole. The year-to-date total is heavily skewed by the $1.4 billion theft of Ethereum and Ethereum-related assets from crypto exchange Bybit, the largest crypto-theft in history.
But DeFi has been taking the biggest hits lately. In April, hackers stole $92.4 million from decentralized networks in 15 separate incidents, Immunefi said.
Decentralized finance (DeFi) aims to automate traditional financial services like banking or lending. Yet, these new, experimental financial networks are notoriously susceptible to being targeted by criminals.
Earlier this month, hackers hit open-source DeFi platform UPCX with an attack, making off with $70 million in digital tokens. Two weeks later, hackers stole $7.5 million from KiloEx, a decentralized exchange for trading perpetual futures.
Immunefi's founder and CEO Mitchell Amador told Decrypt that DeFi, though operating in a highly adversarial environment, was getting more secure for the pros.
"Generally, when it comes to established projects, we could argue DeFi is getting safer" he said. "The maturity of the current security stack is far better than what we were seeing two or three years ago, making it more difficult for hackers to exploit vulnerabilities."
Immunefi's report added that Ethereum and BNB Chain were the most targeted blockchains, representing 60% of the total losses across all blockchains in April.
Digging Deeper: The cryptocurrency market faced formidable challenges in 2022, primarily affecting DeFi and Ethereum projects. Systemic vulnerabilities and external pressures contributed to these losses.
- The collapse of TerraUSD/Luna destabilized the DeFi ecosystem, eroding trust in stablecoins and protocols relying on them.
- The SEC's crackdown on crypto firms and the Federal Reserve's aggressive rate increases triggered a flight from risk assets, causing steep declines in crypto assets.
- The implosion of FTX and Coinbase amid liquidity crises exposed systemic weaknesses.
- Cryptocurrencies mirrored Nasdaq's volatility, reflecting their high-risk status.
- Smart contract exploits have become prevalent in Ethereum's DeFi ecosystem.
The 2022 downturn illuminated structural weaknesses, including poor risk management in DeFi and regulatory gaps. Similar patterns (macroeconomic shocks, regulatory actions) arose in 2025, as seen in April 2025's crypto decline tied to U.S. GDP reports and geopolitical tensions.
- The staggering losses in 2022's crypto market, surpassing 2024's record at $1.7 billion, are primarily due to hacking and fraud, much to the dismay of crypto users.
- Immunefi's report highlights that, in 2022 alone, $1.7 billion has been lost from cryptocurrency projects, already 14% more than the total losses of $1.49 billion in 2024.
- The report paints a concerning picture of the vulnerability of DeFi networks and crypto investments as a whole, with the year-to-date total heavily influenced by the largest crypto-theft in history, the $1.4 billion theft of Ethereum and Ethereum-related assets from crypto exchange Bybit.
- In 2022, a total of $92.4 million was stolen from decentralized networks across 15 incidents, as DeFi takes the brunt of the losses.
- Decentralized finance, or DeFi, aims for the automation of traditional financial services but is notoriously susceptible to being targeted by criminals.
- Despite operating in a hostile environment, DeFi, specifically established projects, is becoming safer, according to Immunefi's founder, Mitchell Amador.
- According to Immunefi's report, Ethereum and BNB Chain are the most targeted blockchains, accounting for 60% of the total losses across all blockchains in April.
- The breakdown of TerraUSD/Luna, the SEC's crackdown on crypto firms, and the Federal Reserve's aggressive rate increases triggered steep declines in crypto assets in 2022.
- Regulatory gaps and poor risk management in DeFi have been spotlighted as structural weaknesses in the 2022 downturn, with similar patterns emerging in 2025.
- Amid liquidity crises, the implosion of FTX and Coinbase, as well as smart contract exploits in Ethereum's DeFi ecosystem, have exacerbated the losses in the cryptocurrency market.
