In 2024, the cryptocurrency industry faced another turbulent year with cybercriminals stealing a record-breaking $2.2 billion from various platforms. This marked a significant 21% increase in thefts compared to the previous year, indicating an escalating trend of cyberattacks on the digital asset ecosystem.
According to a report by blockchain analytics firm Chainalysis, there were 303 incidents of theft from cryptocurrency platforms in 2024, which is 23% higher than the previous year’s count of 282 incidents. The first half of the year alone saw $1.5 billion in losses, setting the stage for potentially worse results by the end of the year.
However, the frequency and scale of attacks decreased significantly in the latter half of the year. Two major incidents dominated headlines early in 2024 – the Japanese platform DMM Bitcoin suffered a massive breach of digital assets worth $305 million, causing them to shut down operations and sell off assets to SBI Group.
Similarly, the Indian exchange WazirX lost nearly $235 million, resulting in the arrest of a suspect in West Bengal later in November. Chainalysis tracked the stolen funds as they were laundered through various platforms and eventually cashed out via Huione Guarantee, a Cambodian financial hub linked to organized crime and cyber scams.
The firm attributed the initial surge in attacks to North Korean hacking groups, who are believed to have used their ill-gotten gains to fund their country’s ballistic missile programs and circumvent international sanctions. Despite the slowdown in attacks after July, private key compromises continue to pose a significant threat to the crypto industry.
To combat these issues, collaboration between the public and private sectors, real-time web3 security solutions, advanced blockchain analysis, and targeted training are crucial for identifying potential threats and keeping cryptocurrencies safe.
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