Cryptocurrency losses in hacks grew to $2.2 billion in 2024, 21% up from 2023, based on a survey done by Chainalysis, a blockchain analysis firm. This sharp rise highlighted the risks in the crypto industry as it progressed with the growth of the new industry around the world.
Crypto Hacks Hit $2.2B in 2024 Amid Rising Threats
The report was flagged to express that for the fourth consecutive year, the total value of stolen funds has gone above $1 billion per year, an indication of a perpetual problem for the industry. The number of hacking cases also rose from 282 in 2023 to 303 in 2024, again stressing the fact that attacks were becoming more frequent.
They said that it is due to better concealment and a wider range of targets as people embrace cryptocurrencies. Specifically, Decentralized finance (DeFi) has emerged as one of the most favorite kinds of targets based on lower security to compare with centralized exchanges.
However, as the recent cases show, the practice of introducing new types of threats had evolved much faster than the attempts to punish them by regulation. In the wake of these incidents, industry participants are seeking closer diplomacy between governments, secure companies, and blockchains to protect users’ money.
As the adoption of cryptos continues to grow rapidly, the requirement for security solutions is much more pressing now. While blockchain advances, professionals also explain that both platform providers and users should remain on the lookout for threats to prevent the actions of advanced hackers.
Crypto Heists Surge as Bitcoin Hits $100K in 2024
Like Bitcoin, which soared 140% this year to top $100,000, crypto theft has ramped up in recent years. Again, the rally, boosted by institutional acceptance and presidential endorsement by the U.S. President, Donald Trump, has attracted not just retail and institutional investors but also hackers.
According to Eric Jardine, the research lead at Chainalysis focusing on cybercrimes, he pointed out that with the advent of new dimensions in the market involving digital assets, it has indeed observed similar trends in astringent related unlawful activities. In particular, Jardine mentioned that combating the growth of such crimes as fraud in particular will ineluctably remain one of the major tasks for the industry lined up for the new year: ‘To prevent such risks on the increase and, importantly, ensure the proper security measures to counter possible fraud cases, will remain the major focus for the industry.’
The analysis found that most stolen cryptocurrency in 2024 was lost due to the compromise of private keys, which are used to control access to users’ money. It shows that centralized platforms were predominantly under a focus of such attacks, although their use amplified thanks to the improved regulatory treatment.
The increase in associated thefts shows that the problem of the industry, which develops at a high speed, concerns its security. Even with decentralized platforms providing alternatives, their structure too is off-putting to inexperienced users, directing them toward centralized platforms as worthwhile yet easily exploitable.
At the onset of a new year, executives are urging governments, technology companies, and exchanges to organize their forces to combat a growing wave of cryptocurrency-related crimes. As Bitcoin reaches its highest record ever, the importance of defending digital assets is more significant than ever.
North Korea’s Crypto Heists Surge to $1.3B in 2024
In 2024, major crypto hacks were witnessed in the industry, and this includes the loss of 305 million USD that occurred to Japan's DMM Bitcoin in May and WazirX, India’s largest cryptocurrency exchange, which lost $235 million in July. These attacks helped to push the total of stolen digital assets last year to $2.2 billion.
Hacks linked to North Korea also increased significantly, rising from $1.7bn in 2023 to $1.3bn in 2024, data from Chainalysis showed. Today’s increase points toward deepened dependence on digital currency theft to fund operations as the country circumvents all kinds of strict global bans.
Cryptocurrencies were known to be a favorite method of payment used by North Korea to avoid economic sanctions by the United Nations. Nevertheless, the country has been sticking its neck out to clear itself of having any role in cyber hacking or any form of theft involving cryptocurrencies, terming such allegations as mere myths.
North Korea’s sophisticated cyber abilities, frequently linked to Lazarus, go phishing for exchanges, decentralized finance applications, and individual accounts. It is important that global attempts to increase the resilience of crypto infrastructure have become necessary due to these attacks.
While the cryptography continues to be adopted around the globe, analysts opine that state-backed cyber threats are set to increase. While governments want to give the industry a free rein, the risks run both to consumers’ wallets and to geopolitical stability are increasing – states and industry players themselves must tighten cooperation and improve protection against this threat.
