The cryptocurrency world, while experiencing a surge in mainstream adoption and market value, is also grappling with a stark reality: a significant increase in losses due to hacking.
A new report from blockchain analysis firm Chainalysis reveals that funds stolen from crypto platforms jumped to a staggering $2.2 billion in 2024, a 21% increase from the previous year.
This alarming rise underscores the persistent vulnerabilities within the digital asset space and the sophisticated tactics employed by cybercriminals.
-Crypto hacks exceed $1 billion for fourth straight year-
This year marks the fourth consecutive year in which losses from crypto hacks have surpassed the $1 billion mark, solidifying a troubling trend in the industry. The number of hacking incidents also rose to 303 in 2024, up from 282 in 2023.
In total, hackers stole $1.8 billion in 2023.
The increase in the volume and frequency of these heists indicates the need for improved security protocols and robust countermeasures.
Bitcoin’s rise and the dark side of growth
The jump in crypto hacking comes as Bitcoin (BTC-USD) experienced a remarkable surge, climbing 140% this year to exceed $100,000, attracting greater institutional participation and even support from US President-elect Donald Trump.
As Eric Jardine, Chainalysis’ cybercrimes research lead, notes, “As the digital asset market booms, it is typical to see the illicit use of crypto grow in tandem.”
This correlation presents a major hurdle for the industry, highlighting the challenge of safeguarding digital assets amidst rapid expansion.
Jardine further suggests that “Countering the proliferation of these crimes — especially fraud — will undoubtedly be a key challenge for the industry in the new year.”
Private key compromises
The Chainalysis report indicates that compromises to private keys, which control access to users’ assets, accounted for the majority of stolen crypto this year.
Most of these attacks targeted centralized platforms, highlighting the risks associated with these types of exchanges.
Some of the most notable incidents included the theft of over $305 million from Japan’s crypto exchange DMM Bitcoin in May, and the loss of $235 million from India’s WazirX in July.
These heists underscore the significant vulnerabilities present within the current infrastructure.
North Korea’s growing role in crypto hacking
The report also highlights the troubling trend of cryptocurrency hacking linked to North Korea, which more than doubled from the previous year to a record high of $1.3 billion in 2024.
This represents a significant portion of the total losses, highlighting the geopolitical implications of these cybercrimes.
The United Nations has stated that cryptocurrency allows North Korea to circumvent international sanctions.
While North Korea routinely denies any involvement in cyber hacking or crypto heists, the data indicates a clear link between the country and illicit crypto activities.
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