Annual average loss from virtual asset hacking is 0.24%… Ark Invest claims 'hidden transaction tax'

Ark Invest digital-asset research lead Lorenzo Valente argued that crypto hacking losses function as a "hidden transaction tax" and cost of storing value, passed to users much as retail theft losses are baked into prices, Odaily reported. Valente put average annual hacking losses since 2018 at 24 basis points (0.24%) of total crypto market capitalization, and warned that repeated exploits erode the competitiveness of crypto networks. He likened the dynamic to U.S. banking-sector fraud losses relative to deposits. The claim matters because it reframes security breaches as a persistent, quantifiable drag on user returns rather than one-off events. Watch for follow-up data comparing crypto exploit losses with traditional finance fraud rates, and for whether the 0.24% figure holds as market cap and hack volumes change.