The cryptocurrency ecosystem has witnessed an array of hacks over the years. Several prominent networks and firms have been hit by exploiters across the globe. Despite the increased efforts of law enforcement, these ill-doers continue to exploit the market. This was revealed in the 2024 Chainalysis Crypto Crime Report. The total amount lost to cryptocurrency hacks in 2024 surged to a high of $2.2 billion.
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Key Findings From 2024’s Cryptocurrency Security Breaches
As the total amount spiked to $2.2 billion, the report noted that the market saw 21% more than in 2023. In 2024, 303 instances of cryptocurrency theft were reported, compared to 282 occurrences in 2023. It is worth noting that the amount of cryptocurrency theft has surpassed $1 billion for the fifth year in a row.
While the market has usually recorded hacks in the decentralized finance network, exploiters were onto something different in 2024. During this year, hacks in the centralized services witnessed a spike. The heist of almost $305 million from Japan’s cryptocurrency exchange DMM Bitcoin in May and the $235 million loss from India’s WazirX in July are two of the most prominent thefts.
In addition, North Korean hackers were responsible for 1.34 billion of the total money that was taken in 47 incidents. This is more than twice as much as the $660.5 million that was taken in 2023. But, starting in July 2024, North Korean activity decreased by 53.7%. The market links this to geopolitical events like the Putin-Kim Jong Un Summit Meeting.
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Looking Into The Reason Behind This
The world’s largest cryptocurrency Bitcoin (BTC) increased 140% this year to move beyond the $100,000 mark, increased institutional investment and support from U.S. President-elect Donald Trump were major highlights. Several believe that this could be the reason behind the surge in hacks. Chainalysis’ cybercrimes research lead Eric Jardine spoke about the same and said,
“As the digital asset market booms, it is typical to see the illicit use of crypto grow in tandem. Countering the proliferation of these crimes — especially fraud — will undoubtedly be a key challenge for the industry in the new year.”
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