I. Overview
In 2024, the blockchain industry moves forward amidst the clash of security and innovation. In this context, this report reviews key regulatory compliance policies and anti-money laundering dynamics in the blockchain industry in 2024, summarizes the blockchain security incidents of 2024, and outlines typical fraud techniques. Additionally, we invited the Web3 anti-fraud platform ScamSniffer to write about phishing Wallet Drainers, and we analyzed and compiled the money laundering methods and profits of North Korean hackers. We hope this report provides beneficial information to readers, helping practitioners and users gain a more comprehensive understanding of the current state of blockchain security and solutions, contributing to the safe development of the blockchain ecosystem.
II. Blockchain Security Landscape
According to SlowMist Hacked's database of blockchain hacking incidents, there were a total of 410 security incidents in 2024, resulting in losses of up to $2.013 billion. Compared to 2023 (a total of 464 incidents with losses of approximately $2.486 billion), losses decreased by 19.02% year-on-year.
Note: The data in this report is based on token prices at the time of the incidents. Due to price fluctuations and some undisclosed incidents not included in the statistics, the actual losses should be higher than the statistical results.
Source: ForesightNews https://hacked.slowmist.io/statistics/?c=all&d=2024
Overview of Blockchain Security Incidents
From the perspective of project tracks, DeFi remains the most frequently attacked industry. In 2024, there were 339 security incidents in DeFi, accounting for 82.68% of total security incidents, with losses reaching $1.029 billion. Compared to 2023 (a total of 282 incidents with losses of approximately $773 million), losses increased by 33.12% year-on-year.
Source: ForesightNews Distribution and Losses of Security Incidents Across Tracks in 2024
Source: ForesightNews 2023 and 2024 DeFi Security Incident Distribution and Loss Comparison Chart
From an ecological perspective, Ethereum suffered the highest losses, reaching $465 million. The second highest was BSC, at $87.35 million.
Source: ForesightNews Distribution and Losses of Security Incidents Across Ecosystems in 2024
In terms of the causes of incidents, contract vulnerabilities led to the most security incidents, reaching 99, resulting in losses of approximately $214 million. The second most common cause was account hacks.
Source: ForesightNews Security Incident Techniques of 2024
Typical Attack Incidents
This section selects the Top 10 security attack incidents with losses in 2024. Details can be found in the PDF file at the end of this document.
Source: ForesightNews Top 10 Security Attack Incidents of 2024
Rug Pull
Rug Pull is a scam where malicious project teams create hype to attract users to invest, and when the time is right, they 'pull the rug' and abscond with the funds. According to SlowMist Hacked's database, there were as many as 58 Rug Pull incidents in 2024, resulting in losses of approximately $106 million. Among these, the zkSync ecosystem saw the highest losses, reaching $36.95 million, while BSC had the most incidents, totaling 28.
Source: ForesightNews Top 10 Rug Pull Incidents of 2024
Source: ForesightNews Distribution and Losses of Rug Pull Incidents Across Ecosystems in 2024
With the rise of meme coins, many users, driven by speculation and FOMO, ignored potential risks. Some issuers didn't even need to depict a vision or provide a white paper; they could create hype and attract users to buy tokens based purely on a concept or slogan. The low cost of malicious actions has led to an increase in Rug Pull incidents. After users' funds are Rugged by malicious project teams, they often face a long and difficult recovery process. To address this, the SlowMist security team suggests that users thoroughly understand the project's background and team information before participating to carefully select investment projects and avoid potential risks.
Phishing
Note: This subsection focuses on analyzing Wallet Drainer attacks on EVM-compatible chains, authored with care by ScamSniffer, for which we express our gratitude.
Wallet Drainer is an attack method deployed on phishing websites that induces users to sign malicious transactions to steal crypto assets. In 2024, such attacks caused losses of approximately $494 million, a year-on-year growth of 67%. Although the number of victims only grew by 3.7% (reaching 332,000 addresses), the loss per attack significantly increased, with the largest single theft amount reaching $55.48 million.
Source: ForesightNews Key Data Indicators of Wallet Drainer Attacks in 2024
Source: ForesightNews
1. Important Nodes
Pink Exit (End of May): Market share 28%, absorbed by Inferno.
Angel Takes Over Inferno (End of October): Angel's market share declines, while Inferno maintains a market share of 40-45%.
2. Market Landscape Evolution
Q1-Q2: Three Dominants (Angel: 42%, Pink: 28%, Inferno: 22%)
Q3: Duopoly Competition (Inferno: 43%, Angel: 25%)
Q4: New Landscape (Inferno and Angel: 45%, Acedrainer: 20%, Other New Drainers: 25%)
As of 2024, known losses based on phishing signatures have reached $790 million. Although such attacks decreased in the second half of the year, this may indicate that attackers are turning to other methods, such as malware, which are more covert. With the development of the Web3 ecosystem, challenges in protecting user asset security remain. Regardless of how attack methods change, sustained security awareness and protective capability building are always key to safeguarding asset security.
Fraud
This section highlights some fraud techniques we uncovered in 2024:
Mining Fraud
Arbitrage Fraud
Airdrop Fraud
Stealing X Fraud
Pixiu Platform
Malicious Trojan
III. Anti-Money Laundering Landscape
This section is divided into four parts: Anti-Money Laundering and Regulatory Dynamics, Anti-Money Laundering Data, North Korean Hackers, and Mixing Tools.
Anti-Money Laundering and Regulatory Dynamics
In 2024, significant developments occurred in the regulatory environment for cryptocurrencies, most notably the EU's implementation of the MiCA regulation and the advancement of stablecoin legislation in the United States. In terms of law enforcement, stricter measures to combat illegal activities were announced worldwide this year, with significant progress in stablecoin regulation, cross-border crypto policies, and law enforcement actions against major participants in the crypto industry. Specific policies and enforcement actions can be found in the PDF at the end of this document.
Anti-Money Laundering Data
1. Fund Freezing Data
With the strong support of InMist's intelligence network partners, SlowMist assisted clients, partners, and publicly reported hacking incidents to freeze funds totaling over $112 million in 2024.
In 2024, Tether froze approximately $540 million in USDT; in 2024, Circle froze approximately $13.36 million in USDC.
Source: ForesightNews https://dune.com/misttrack/2024
2. Fund Return Data
In 2024, there were 410 security incidents, and a total of 24 incidents managed to recover all or part of the lost funds after being attacked. According to disclosed data, approximately $16.6 million was returned, accounting for 8.25% of total security losses (approximately $2.013 billion).
North Korean Hackers
In 2024, North Korean hacker organizations were implicated in multiple cyber theft cases, resulting in hundreds of millions of dollars in cryptocurrency being stolen. Below is a list of significant incidents committed by North Korean hacker organizations (data source: SlowMist Hacked).
Source: SlowMist Hacked
This section focuses on analyzing the attack methods of North Korean hackers, using the BingX incident followed up by SlowMist as an example to introduce the money laundering methods of North Korean hackers.
Mixing Tools
1. Tornado Cash
Source: Dune https://dune.com/misttrack/2024
2. eXch
Source: Dune https://dune.com/misttrack/2024
3. Railgun
Railgun has implemented Private Proof of Innocence (PPOI), using zero-knowledge proofs to ensure users can verify their funds are not related to illegal activities without compromising privacy. This innovation strikes a crucial balance between privacy and compliance, making it harder for malicious actors to use the platform for money laundering.
IV. Conclusion
In 2024, the blockchain industry faces new opportunities and challenges amidst ongoing innovation and transformation; various security incidents and anti-money laundering dynamics provide profound warnings and prompt us to pay more attention to industry standards and technological safeguards. Through the analysis of 2024 blockchain security incidents and money laundering cases, we hope to raise awareness about industry security.
In the future, as the regulatory framework gradually improves and technological means continue to upgrade, we have reason to believe that the blockchain industry will move towards a safer, more transparent, and compliant direction. We hope this report can provide valuable information to readers, helping them gain a more comprehensive understanding of the security and anti-money laundering status of the blockchain industry, and we look forward to our collective efforts in contributing to building a safer, more stable, and trustworthy blockchain ecosystem.
This article is authorized for reproduction from: (ForesightNews)
Original Author: SlowMist AML Team
'$2 billion lost in the crypto space in 2024! SlowMist reveals 10 major hacking events, significant advancements in crypto regulation' was first published in 'Crypto City'
