Authorities across Southeast Asia are ramping up efforts to tackle illegal activities tied to cryptocurrency, as recent reports highlight the significant financial and regulatory challenges posed by these incidents. In Thailand, officials seized nearly 1,000 Bitcoin mining devices allegedly involved in a multi-million dollar electricity theft. Meanwhile, blockchain security firms such as PeckShield and CertiK have revealed that over $3 billion was lost to crypto-related hacks and scams in 2024, reflecting the persistent vulnerabilities in the fast-evolving digital asset space.
Over $3 Billion Stolen in Hacks and Scams, Reports Show
Blockchain security firm PeckShield reported that more than $3 billion was stolen in crypto-related activities throughout 2024. This alarming figure marks a significant increase of approximately $400 million compared to 2023, highlighting the persistent threats faced by investors and institutions in the space.
In a social media post on Jan. 9, PeckShield revealed detailed data from its 2024 security analysis, showing that cryptocurrency hackers and scammers collectively stole $3 billion in digital assets. This figure represents a 15% increase from the previous year, reflecting a surge in the monetary value of stolen crypto despite a noticeable decline in the overall number of incidents.
“This [2024] total includes $2.15 billion stolen from crypto hacks and $834.5 million stolen from scams,” PeckShieldAlert stated. However, there was a silver lining: approximately $488.5 million worth of stolen assets were successfully recovered, thanks to coordinated efforts by security firms and law enforcement agencies.
PeckShield's findings also pointed to a tapering off in the number of hacks and scams toward the end of 2024, continuing a downward trend that started in 2022. This decrease in frequency, however, did little to assuage concerns, given the increasing sophistication of cybercriminals and the larger sums involved in each incident.
According to another security report by blockchain analytics firm Chainalysis, hackers targeted decentralized finance (DeFi) platforms for the majority of their illicit gains in 2024. DeFi platforms, known for their transparency and accessibility, have also proven to be lucrative targets for attackers exploiting vulnerabilities in smart contracts and decentralized protocols. Chainalysis estimated that $2.2 billion of the stolen funds came from such platforms, particularly during the first quarter of the year.
CertiK, another leading blockchain security firm, highlighted the growing prevalence of phishing scams in 2024. These scams were identified as the "most costly attack vector" during the year, with cybercriminals stealing over $1 billion across 296 reported phishing incidents.
Phishing attacks typically involve malicious actors impersonating legitimate platforms or individuals to deceive users into revealing sensitive information, such as private keys or wallet credentials. In one notable incident, hackers breached the Virtuals Protocol Discord server and posted fake Google links, tricking unsuspecting users into compromising their wallets.
As the crypto industry matures, experts warn that 2025 could see an evolution in the tactics employed by hackers and scammers. A CertiK spokesperson expressed concerns about the potential use of artificial intelligence (AI) in enhancing phishing techniques. AI could enable more convincing impersonation of trusted entities, making it even harder for users to differentiate between legitimate and fraudulent interactions.
The broader adoption of cryptocurrency by institutions and increasing regulatory clarity in key markets may also attract more sophisticated cybercriminals seeking to exploit the influx of new investors.
Contextualizing the Surge in Crypto Crime
While the monetary value of stolen crypto surged in 2024, the number of incidents and the total amount of assets stolen remained lower than the peaks observed in 2022. This trend aligns with a period of heightened regulatory scrutiny and market downturns, which may have discouraged opportunistic attacks but did not eliminate the threats posed by organized cybercriminal networks.
Reports from Chainalysis, PeckShield, and CertiK all point to the need for stronger security measures, greater awareness among crypto users, and continued innovation in blockchain security technology.
The findings from these reports have spurred calls for improved security measures across the crypto industry. Experts suggest that users should adopt robust security practices, including the use of hardware wallets, multi-signature authentication, and vigilance against phishing attempts. Platforms and developers, on the other hand, are being urged to conduct thorough audits of smart contracts and implement advanced threat detection systems.
As cryptocurrencies continue to gain traction in mainstream finance, the stakes are higher than ever for ensuring the safety of digital assets. While the challenges ahead are significant, collaborative efforts between blockchain security firms, regulators, and industry participants could pave the way for a safer crypto ecosystem.
Thai Authorities Seize 996 Bitcoin Mining Devices in Multi-Million Dollar Electricity Theft Case
In related news, Thai authorities have seized 996 Bitcoin mining machines from a company accused of illegally siphoning off electricity to power the rigs. The operation, conducted by the Crime Suppression Division (CSD) and the Provincial Electricity Authority (PEA), targeted JIT Co., a firm based in Phanat Nikhom, Chon Buri. The Bangkok Post and Nation Thailand reported on Jan. 9 that the alleged theft could amount to hundreds of millions of Thai Baht, translating to at least $2.88 million at current rates.
Pol Maj Gen Montree Theskhan, commander of the CSD, confirmed the seizure of the mining machines during a raid on Jan. 8. The company allegedly modified electricity meters to operate mining rigs at night while using legitimate power during the day to avoid detection. Solar panels were also installed on-site but were reportedly not connected to the mining operations.
The scale of the electricity theft was staggering. JIT Co.’s energy consumption to mine Bitcoin far exceeded normal household usage. For context, the Bangkok Post noted that an efficient Bitcoin mining setup costs around 620,000 Thai Baht ($17,930) to mine a single Bitcoin—825 times the average monthly power bill in Thailand.
While JIT Co. was registered for digital asset trading, it is now accused of running a clandestine mining operation. Nation Thailand reported that the CSD has yet to identify the individuals or company fully responsible for the theft. Arrest warrants are expected to be issued as investigations progress.
Crypto Mining in Southeast Asia: A Regional Perspective
Thailand’s action against JIT Co. is the latest in a series of crackdowns on illegal cryptocurrency mining across Southeast Asia. Neighboring Malaysia, for example, reported that approximately $723 million worth of electricity was used for illegal crypto mining between 2018 and 2023. Malaysian authorities have been seizing mining equipment since 2019, with some cases leading to public destruction of confiscated machines.
The surge in illegal crypto mining in the region is fueled by the rising value of Bitcoin and the potential profits from mining operations. However, the high energy demands of mining rigs and the associated costs often lead operators to resort to electricity theft to sustain their operations.
The crackdown comes at a time when Thailand is seeking to position itself as a hub for digital innovation. The country recently announced plans to trial cryptocurrency payments in Phuket, a popular tourist destination, as part of a pilot program aimed at offering foreign visitors alternative payment options.
Former Prime Minister Thaksin Shinawatra has urged the government to explore the potential of cryptocurrency further to stay competitive on the global stage. However, incidents like the JIT Co. case demonstrate the challenges Thailand faces in balancing innovation with regulation and security.
The JIT Co. incident highlights the need for stricter regulatory oversight and robust enforcement mechanisms in the cryptocurrency sector. As Thailand embraces digital assets, the government must address gaps in its regulatory framework to prevent similar cases of electricity theft and ensure fair practices in the industry.
Authorities are expected to tighten monitoring of energy consumption and increase cooperation with electricity providers to identify anomalies. The development of clearer guidelines for crypto mining operations, including mandatory registration and compliance audits, could help mitigate risks associated with illicit activities.
