Wallet Compromises Drive Crypto Losses Amid Shift to Direct Attacks

Israeli blockchain intelligence company Lionsgate found that wallet compromises account for a disproportionate share of million-dollar cryptocurrency losses. The analysis, which covered over 1,000 fraud cases, revealed that wallet compromises made up 34.5% of cases involving losses greater than $1 million.

This is nearly twice their share across the broader dataset. Bezalel Eitan Raviv, founder of Lionsgate Intelligence Network, attributes this trend to sophisticated attackers targeting high-value victims and moving away from traditional investment scams.

The company works with law enforcement agencies like the FBI and IRS Criminal Investigation to support investigations involving cryptocurrency theft, money laundering, and digital asset tracing. According to Raviv, most victims wait too long before seeking help, often allowing stolen assets to be quickly moved between multiple blockchain addresses and services.