The cryptocurrency industry experienced another turbulent year in 2024 due to a significant increase in cyberattacks. According to a report by blockchain analytics firm Chainalysis, cybercriminals stole an unprecedented $2.2 billion from crypto platforms, marking a 21% rise from the previous year. This marked the fifth consecutive year where thefts from cryptocurrency platforms exceeded $1 billion, with the number of incidents increasing from 282 in 2023 to 303 in 2024.

The first half of the year saw $1.5 billion in losses, setting the stage for a potentially catastrophic total by the end of the year. However, the frequency and scale of attacks tapered off in the latter half of the year. Two major incidents dominated headlines early in 2024: the Japanese platform DMM Bitcoin experienced a $305 million breach, forcing its owners to shut down operations and sell off assets to SBI Group; and the Indian exchange WazirX lost nearly $235 million, resulting in the arrest of a suspect in West Bengal later in November.

North Korea emerged as the most prolific perpetrator of crypto thefts in 2024, responsible for $1.34 billion across 47 incidents. This represented a dramatic increase from the $660.5 million stolen in 20 attacks during 2023. According to Chainalysis, these groups have become “notorious” for their sophisticated heists, which are believed to fund North Korea’s ballistic missile programs and help circumvent international sanctions.

The report highlighted several alarming trends, including incidents involving thefts between $50 million and over $100 million becoming more frequent and North Korean hackers targeting smaller platforms, stealing amounts as low as $10,000. Interestingly, there was a sharp decline in North Korean-linked attacks after July, coinciding with a summit between Russian President Vladimir Putin and North Korean leader Kim Jong Un in June.

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