In 2024, cryptocurrency hacks reached an unprecedented level of sophistication, affecting both decentralized finance (DeFi) protocols and government institutions.
These incidents not only exposed structural flaws in the affected platforms, but also shook users' trust in blockchain technology and digital services.
Over $2.2 billion was stolen from the crypto market over the year
In 2024, the cryptocurrency world faced a growing wave of cyberattacks, reflecting the increased sophistication of hackers and the vulnerability of systems in the crypto space.
While cryptocurrency exchange platforms remain the main targets, blockchain networks and DeFi protocols have also been affected, highlighting the need for more stringent security measures.
Additionally, the rise in phishing attacks and the rise in identity theft continue to affect everyday users, who should be more cautious when interacting with unverified websites.
In this context, 2024 highlighted the urgent need to improve cybersecurity and develop more robust protocols to protect digital assets.
According to Chainalysis, in the year that is about to end, stolen funds increased by approximately 21.07% year-on-year to reach $2.2 billion, and the number of individual hacking incidents rose from 282 in 2023 to 303 in 2024.
Stolen Crypto Funds – Year-on-Year Comparison. Source: Chainalysis
Top Crypto Hacks That Were Trending in 2024
The crypto industry has witnessed several major attacks throughout 2024. Below are the three attacks that caused the biggest losses to investors.
3. WazirX hack and theft of $235 million
In an incident that shocked the industry in India, WazirX, one of the country’s leading cryptocurrency exchanges, was hacked in July. A total of $235 million was transferred to an unknown wallet, which was linked to money laundering activities through Tornado Cash.
Cyvers was instrumental in identifying this suspicious activity, although the absence of an official whistleblower complicates the recovery of funds and progress of the investigation.
Amount of different assets lost in the WazirX hack. Source: Elliptic Research
In a conversation with BeInCrypto, WazirX confirmed the security breach. Additionally, the cryptocurrency exchange confirmed that it has temporarily paused withdrawals of fiat and crypto assets.
“We are aware that one of our multisig wallets has suffered a security breach. Our team is actively investigating the incident. To ensure the safety of users’ assets, INR and cryptocurrency withdrawals will be temporarily suspended,” WazirX told BeInCrypto.
In turn, Deddy Lavid, CEO of Cyvers, shared with BeInCrypto some details that may point to a notorious author.
The use of Tornado Cash to fund transactions is indicative of methods used in previous high-profile attacks. While it is too early to definitively link this incident to the Lazarus Group, the similarities are concerning. Cyvers is closely analyzing the situation, Lavid explained.
2. Hackers steal $290 million in two attacks on PlayDapp
PlayDapp, a gaming and decentralized finance (DeFi) platform, suffered two attacks in February. Hackers targeted and exploited the platform’s key management vulnerability and stole $290 million worth of PLA tokens, the platform’s native token.
This attack was notorious because the hackers ignored a $1 million reward offered to return the stolen money.
PlayDapp’s efforts to track the stolen funds were unsuccessful, and the missing tokens are still missing. As a result, the platform’s operations have been impacted as it struggles to regain the trust of its users.
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1. Biggest hack of the year: Hackers stole over $300 million worth of cryptocurrency from DMM Bitcoin
Experts have highlighted this incident as the biggest crypto hack of 2024. It involved the DMM Bitcoin security breach that occurred in May.
This was the third major hack of a cryptocurrency exchange in Japan in 10 years. However, DMM Bitcoin has pledged to cover the losses and restricted spot purchases.
The FBI has officially attributed the crime to North Korean hackers. Source: FBI.gov.
In June of the same year, DMM Bitcoin had revealed details about its strategy to raise funds. The company planned to raise capital from its group companies through a 48 billion yen ($307.8 million) capital increase and 2 billion yen ($12.8 million) in subordinated debt.
The measure seeks to reduce any potential impact on the Bitcoin (BTC) market during the acquisition of crypto assets.
However, not everything went as expected, as just a week before this article was written, local sources reported that DMM Bitcoin was ceasing operations permanently. The company tried for several months to recover client assets, but ended up transferring accounts to SBI VC Trade.
The Nikkei reported on the closure of DMM Bitcoin, noting that the platform is being liquidated following the severe operational damage caused by the hack. The exchange’s social media accounts did not mention the closure, and its blog has apparently become unavailable.
Japanese financial regulators have previously warned other exchanges about the need to implement stricter security measures to prevent similar incidents.
Final reflection
These incidents highlighted the increasing sophistication of cyberattacks and the inherent vulnerabilities in complex systems like blockchain.
The lack of robust security protocols and the delay in detecting suspicious activity have exacerbated the consequences of these attacks. The technology industry must prioritize investments in cybersecurity to prevent the recurrence of these events and restore user trust.
The article Top 3 hacks that shook the crypto market in 2024 was first seen on BeInCrypto Brazil.
