According to blockchain security firm Cyvers, a new blockchain security solution could prevent over 99% of cryptocurrency hacks and scams, which cost the industry more than $2.3 billion in 2024. Hacks continue to be a major obstacle to widespread cryptocurrency adoption, with stolen digital assets surpassing the total in 2023 by 40%, according to Cyvers.
Michael Pearl, vice president of GTM strategy at blockchain security company Cyvers, stated that an emerging blockchain security solution has the potential to prevent nearly all cryptocurrency scams. This is achieved by simulating and validating blockchain transactions in an offchain environment before they occur. Pearl explained that with comprehensive monitoring and preemptive interception, this solution can prevent 99.9% of all hacks, including zero-day hacks that are unknown.
Pearl mentioned that an increasing number of wallet providers and centralized exchanges (CEXs) are showing interest in Cyvers’ transaction validation solution. This solution can be applied to both small retail-size transactions and more complex blockchain transfers, such as flash loans.
Phishing scams in the crypto space were responsible for $1 billion in stolen funds across 296 incidents in 2024, making them one of the most damaging attack vectors. At least three phishing incidents resulted in losses exceeding $100 million.
According to Pearl, Cyvers’ solution could have detected the malicious smart contract that caused the $230 million WazirX hack eight days before the funds were lost. He also highlighted that the solution could be used to protect CEXs, which are particularly vulnerable due to their reliance on a few hot wallets holding billions of dollars.
Cyvers’ 2024 report revealed that access control vulnerabilities, known as access control vulnerabilities, accounted for $1.9 billion worth of stolen value in 2024. This represents over 81% of the total amount lost to crypto hacks across 67 cybersecurity incidents. Smart contract exploits ranked as the second-largest attack vector, resulting in $456 million in losses across 98 incidents, accounting for 19% of the total value stolen.