Is Crypto Safe? The Truth Behind Blockchain Security and Crypto Crime

Cryptocurrency has revolutionised the financial landscape, offering decentralised and borderless transactions. However, with any new technology use cases, comes a new wave of use cases for illicit activity.

The Scale of Crypto Crime: Contextualizing the Numbers

According to the 2025 Chainalysis Crypto Crime Report, illicit addresses received approximately $40.9 billion in cryptocurrency during 2024.

While this figure might seem alarming, it’s crucial to note that it represents just 0.14% of the total on-chain transaction volume for the year. This percentage marks a significant decrease from 0.61% in 2023, indicating improved security measures and awareness within the crypto community.

The Evolving Nature of Crypto Threats

While the proportion of illicit transactions has decreased, the sophistication of crypto-related crimes has escalated. Key trends include:

• Rise of Stablecoin Misuse: Stablecoins, due to their stability and liquidity, have become the preferred medium for illicit transactions, accounting for 63% of such activities in 2024.

  
  

• Advanced Scams and Fraud: Scams like “pig butchering,” where victims are manipulated into fraudulent investments, saw a 40% increase.

  
  

• State-Sponsored Cyber Attacks: Notably, North Korean hackers were responsible for over 60% of the $2.2 billion stolen in 2024, often infiltrating crypto firms to facilitate large-scale thefts.

  
  

• AI-Driven Scams: AI’s computational output is now far exceeding human capability. In 2024 alone, over 25% of reported online scams involved some form of AI-generated content, whether through deepfake videos, voice cloning, or sophisticated chatbot phishing.

  
  

  According to a global cybersecurity survey, more than 37% of users admitted to being tricked by AI-generated messages, many believing them to be from trusted sources like banks, exchanges, or even family members. These tools are now being weaponised to create hyper-realistic investment platforms, impersonate CEOs, and simulate wallet interfaces with shocking accuracy.

  
  

  As AI continues to evolve, the line between real and fake is vanishing, making it critical for users to remain vigilant.

Enhancing Crypto Safety

To navigate the crypto space securely:

1. Utilise Cold Wallets: Store significant assets in hardware wallets, keeping them offline and less susceptible to hacks.

   
   

2. Be Cautious of Phishing Attempts: Always verify URLs and avoid clicking on suspicious links or attachments.

   
   

3. Regularly Update Security Protocols: Ensure all software, including wallets and antivirus programs, are up-to-date.

   
   

4. Educate Yourself: Stay informed about the latest scams and security threats in the crypto world.

Navigating the Crypto Landscape Safely

While the crypto industry has made significant strides in enhancing security, it’s not devoid of risks. However, with informed practices and vigilance, individuals can navigate the crypto landscape safely. Remember, the key lies in continuous education and proactive security measures.

Whether you’ve lost funds to a phishing attack, been scammed by a fake trading platform, or just want to make sure your assets are secure — Crypto Seeker is here to help.