• $3.7 billion was lost to crypto scams, hacks, and exploits in 2022, according to blockchain audit firm CertiK.

• That marks the worst year ever for the industry, which lost $3.2 billion in 2021.

• Among last year's notable hacks, Sky Mavis' Ronin Bridge was exploited for $625 million in April.

Cryptocurrency markets lost $3.7 billion to scams, hacks and exploits in 2022 — the worst year for the industry and up from $3.2 billion in 2021, according to data from blockchain audit firm CertiK.

While December was the least harmful month in 2022 with roughly $62 million worth of crypto-based exploits, more than $595 million worth of tokens was stolen in November, CertiK added.

A separate report from blockchain analytics firm TRM Labs also put 2022's losses at $3.7 billion and estimated that about 80% of the stolen funds involved attacks against decentralized finance (DeFi) projects.

"With almost three times as much value lost from Web3 protocols in 2022 compared to 2021, it's clear that there's still a lot of work to be done to secure the Web3 world," Ronghui Gu, the CEO and cofounder of CertiK, told Insider in a statement.

Gu added: "Centralized crypto platforms and exchanges took center stage this year, but if Web3 is to offer a real alternative to centralization then we need to double down on the basics: functionality and security."

Among the notable hacks last year, North Korea's Lazarus Group made off with $625 million after exploiting Axie Infinity's Ronin Network in April. That followed the nearly $325 million attack on cross-chain service Wormhole in February.

Ari Redbord, head of legal and government affairs at TRM Labs, told Insider that North Korea alone was responsible for over $1 billion of stolen funds.

"When you're talking about billions of dollars and North Korea, you're talking about a country with essentially no GDP, so they've essentially created an economy laundering cryptocurrency and we know those funds aren't going to fund a lifestyle," Redbord said.

He added: "They'll be used for nuclear proliferation or ballistic missile systems. In 2022, these hacks moved from being a law enforcement issue to being a national security issue."

Crypto markets had a rocky 2022, with nearly two-thirds of its market value being wiped out over the span of a year, according to data from Messari. The industry continues taking hits from the fallout of Sam Bankman-Fried's once-$32 billion crypto empire FTX, which caused widespread contagion in the last two months of the year.

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